KyberSwap Reports $54 Million Cryptocurrency Theft in Elaborate Cyberattack

KyberSwap disclosed a cyberattack earlier in the week that resulted in the theft of approximately $54 million worth of cryptocurrency. In a recent update, the platform confirmed the incident occurred through complex exploitative swaps, allowing the attackers to siphon users’ funds into their wallets.

The attackers executed a sequence of intricate actions to exploit vulnerabilities, extracting around $54.7 million in total from users’ funds. KyberSwap has responded by suspending deposits, launching an investigation, and engaging in negotiations with the attackers to facilitate the return of funds. As part of this effort, they’ve offered a 10% bounty to incentivize the return of exploited funds.

Describing the event as among the most sophisticated in DeFi history, the platform highlighted the precision required for the attacker to execute a specific series of on-chain actions.

Amidst the situation, KyberSwap urged users to withdraw their funds promptly as investigations unfolded. The hacker, posting on the blockchain, hinted at forthcoming negotiations after rest.

Responding to the hacker’s message, a KyberSwap representative acknowledged the hack’s sophistication and offered a 10% bounty for the safe return of users’ funds, providing a contact email for negotiations.

Various blockchain security firms and researchers echoed KyberSwap’s assessment of the attack’s sophistication. Chainalysis reported a surge in cryptocurrency-related hacks in 2022, with a total of $3.8 billion stolen from industry firms, surpassing the $3.3 billion stolen in 2021.

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