The Kyber Network team has confirmed the incident and urged users to withdraw their funds immediately.
Decentralized exchange protocol KyberSwap has reportedly been attacked by a hacker as more than $45 million worth of crypto was withdrawn from the project across multiple networks.
🚨Urgent🚨
Dear KyberSwap Elastic users,
We regret to inform you that a security incident has occurred at KyberSwap Elastic.
As a precautionary measure, we strongly recommend that all users withdraw their funds immediately. Our team is carefully investigating the situation and we…
— Kyber Network (@KyberNetwork) November 22, 2023
The Kyber Network team confirmed the incident in an X post and advised users to “withdraw their funds immediately.” The team also noted that KyberSwap’s aggregator “is not affected and is functioning completely normally.”
Kyberswap appears to have suffered from an exploit related to its liquidity pools. The issue doesn't appear to affect their router contract, so it shouldn't impact Unibot users' businesses either. Regardless, Unibot has disabled Kyberswap as a built-in aggregator from a plethora…
— Unibot (@TeamUnibot) November 22
While the root cause of the attack is not yet known, users suspect that the protocol has reportedly suffered an exploit affecting its liquidity pools. According to Unibot, a crypto trading bot for Telegram, the issue “does not appear to have any impact on their router contract,” meaning the incident should not affect Unibot users’ businesses.
Analysts at blockchain firm BlockSec claim the hack was possible due to “tick manipulation and double liquidity counting.”
“In summary, the attackers took out a short-term loan and emptied the mining pools with low liquidity. By executing swaps and changing positions, they manipulated the current prices and ticks of the affected pools.”
BlockSec
Shortly after the attack, the hacker left a message on the chain saying that he would soon begin negotiations with the Kyber Network team. According to DefiLlama, due to the incident, the total value of funds locked in KyberSwap fell by almost 84%, from $84.9 million to $13.6 million.
TVL in KyberSwap after the incident | Source: DefiLlama
Security analysts at Lookonchain have calculated that the hacker stole over 10,000 wETH (worth $20.7 million at the time of the attack), more than 4,000 WstETH ($9.5 million), and nearly 4 million ARB (~ $4.1 million) stole Base, Polygon, Optimism, Arbitrum and other networks.
Users believe that the hacker is the same person who attacked Indexed Finance, citing the same crypto address discovered in the transaction history of KyberSwap operations.
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