KyberSwap Elastic Incident Committed to Handling By Team After $48.8 million Hack

2 mins mins

01 December 2023, 18:18:03 GMT +0000

Key Points:

Kyber Network will compensate users for the $48.8 million loss in the recent KyberSwap Elastic incident.
KyberSwap reaffirms its commitment to collaborate with law enforcement and support affected users.
The company plans KyberSwap Treasury grants for users, with details to be announced in the next two weeks.

In the aftermath of the recent KyberSwap Elastic incident, Kyber Network has announced its intention to provide compensation to users who fell victim to the exploitative actions that drained approximately $48.8 million from KyberSwap Elastic liquidity pools.

The KyberSwap Elastic incident occurred on November 22, 2023, at 10:54:09 PM UTC, when an attacker manipulated the KyberSwap Elastic smart contract through a series of complex operations, resulting in significant financial losses for users.

KyberSwap expressed its steadfast commitment to collaborate with law enforcement and cybersecurity experts in tracking down the exploiter and facilitating the recovery of funds for affected users. In a public statement, KyberSwap emphasized their dedication to supporting users during this challenging period and acknowledged the ongoing concerns of those who suffered losses due to the exploit.

Despite KyberSwap Elastic being a decentralized and permissionless protocol where users accept the inherent risks, the platform recognizes the hardship faced by users as a consequence of the exploit. In response, Kyber Network is developing a plan to extend grants from the KyberSwap Treasury to affected users to alleviate their financial strain.

The proposed plan involves offering a grant to each user who lost funds in the exploit and whose funds have not been recovered, equivalent to the USD value of their drained funds at the time of the incident. The details of this Treasury grant are currently under careful consideration, with Kyber Network committed to providing further information within the next two weeks. As Coincu reported, the KyberSwap hacker is now demanding full control of the company after negotiations did not go smoothly.

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