The Most Recent DeFi Breach Causes The Kyberswap Exchange To Lose $46 Million In Crypto Portfolio Assets

A recent decentralised finance (DeFi) exploit led to the loss of approximately $46 million in various crypto assets from the decentralised KyberSwap exchange, as reported by Cointelegraph. Kyber Network issued a Twitter notification to its users on November 23 informing them of a security incident affecting KyberSwap Elastic and recommending that they evacuate their funds as a precaution. The situation is presently under investigation by the team.

Blockchain investigators have identified the addresses of wallets that were recently active and were compromised or exploited. According to data from Debank, the attack resulted in the theft of around $46 million. Of this amount, around $20 million was stolen in wrapped Ether (wETH), $7 million was stolen in wrapped Lido-staked Ether (wstETH), and $4 million was stolen in Arbitrum (ARB). Multiple chains, including Arbitrum, Optimism, Ethereum, Polygon, and Base, were utilised to distribute the funds.

According to a post by blockchain investigator 'Spreek', the matter at hand is exclusively associated with the total value locked (TVL) stored in the Kyber pools and not with approvals. Protocol developers and DAO members were informed via on-chain message that negotiations would commence in a few hours, once the attackers had sufficiently rested. According to data from DefiLlama, KyberSwap's TVL decreased by 68% in a matter of hours, as user withdrawals and the breach caused nearly $78 million to leave the protocol. At present, its TVL is $27 million, which is a decrease from its zenith of $134 million in 2023. The price of a Kyber Network Crystal KNC token dropped 7% momentarily when the news of the exploit broke, but it has since rebounded to $0.74. The team identified a vulnerability in April and advised users to evacuate liquid assets; however, no funds were lost as a result of the incident.