KyberSwap Elastic attacked, loses $48 million, team: withdraw funds ASAP

The decentralized exchange Kyberswap was reported to have been hacked earlier today, with confirmed losses of at least 48 million US dollars. The official team is urging users to withdraw their funds and revoke any authorizations as soon as possible.

KyberSwap Hacked

The decentralized exchange KyberSwap was hacked four hours ago, with hackers stealing $48 million in liquidity assets.

The team stated that they are currently investigating the situation and will provide updates as soon as possible, urging users to withdraw their funds promptly to ensure their safety, according to their official tweet.

🚨Urgent🚨

Dear KyberSwap Elastic Users,
We regret to inform you that KyberSwap Elastic has experienced a security incident.

As a precautionary measure, we strongly advise all users to promptly withdraw their funds. Our team is diligently investigating the situation, and we…

— Kyber Network (@KyberNetwork) November 22, 2023

Community members have also attempted to communicate with the hackers using transaction information, but as of now, there has been no response.

Not the First Attack

In September of this year, the KyberSwap website frontend was exploited by hackers using phishing techniques, resulting in the theft of $250,000, as reported.

1/ ❗️Notice of Exploit of KyberSwap Frontend:

We identified and neutralized an exploit on the KyberSwap frontend. Affected users will be compensated. We have summarized the details in this thread⬇️

— Kyber Network (@KyberNetwork) September 1, 2022

Non-Fork Uniswap

As the KyberSwap Elastic protocol, which was affected this time, focuses on aggregated liquidity similar to Uniswap v3, the community has raised suspicions of a fork to the Uniswap v3 contract. However, the two contracts are unrelated, as KyberSwap Elastic is based on the team's original code, ensuring the safety of funds in Uniswap v3.

However, protocols that forked KyberSwap, such as Horizondex, may face similar risks, and users are advised to withdraw their funds accordingly.

Current Status of KyberSwap

In addition to the stolen funds, users have been withdrawing their assets, resulting in a decrease of approximately $60 million in KyberSwap's TVL today, leaving around $20 million remaining.

However, the Kyber Network token has not been severely impacted, with a price of around $0.73 at the time of writing, representing a 1.5% decrease.