Kyber Network lays off 50% of employees to recover $46.5M in security breach losses
Posted: December 27, 2023 10:39 AM Updated: December 27, 2023 10:39 AM
Correction and fact check date: December 27, 2023, 10:39 AM
briefly
Kyber Network has shut down its KyberAI and Kyber Network projects and launched the KyberSwap Elastic Exploit Treasury Grant Program to help recover from the recent $46.5 million security breach.
Kyber Network, a multi-chain cryptocurrency trading and liquidity hub, faced a security breach earlier this year resulting from abuse of its KyberSwap facility, resulting in a loss of $46.5 million in digital assets.
The attackers stole $46.5 million in various digital assets, including 10,049 Wrapped Ethereum (WETH) worth about $20.78 million, 4,017 Lido-wrapped Staked Ethereum (wstETH) worth about $9.53 million, and about 3.98 million Layer 2 tokens. . Scaling Solutions Arbitrum (ARB), totaling $4.1 million.
Following the security breach, Kyber Network CEO Victor Tran implemented measures to protect the platform’s users and its future. The platform has launched the KyberSwap Elastic Exploit Treasury Grant Program, with the goal of reducing its workforce by 50% and compensating up to 100% of user losses.
Additionally, the network has temporarily suspended certain plans. Kyber Network, an on-chain liquidity protocol that integrates decentralized token swaps into applications and enables the exchange of value between ecosystem participants, has been shut down.
The KyberAI project, which provides KyberSwap users with market data for trading decisions, has also been discontinued. The suspension of these initiatives is part of a strategic refocus effort to address the aftermath of the security breach.
Despite these efforts and the generally stable response from the market, KyberSwap’s native token, Kyber Network Crystal (KNC), has remained relatively stable, trading around $0.72 at the time of this writing. This highlights the resilient nature of DeFi markets and investor confidence. This is the long-term vision of Kyber Network.
Security vulnerabilities in DeFi projects raise concerns
Security vulnerabilities have become a top concern in the rapidly expanding realm of decentralized finance, and recent events highlight the risks associated with well-established projects.
In a recent development, decentralized finance platform Telcoin suffered a vulnerability attack, resulting in a loss of approximately $1.3 million within 24 hours and a 43.25% drop in the platform’s native token TEL. The platform stated its efforts to respond to the attack and promised to provide updates to users once the situation is resolved.
As cyber threats increase, Kyber Network demonstrates resilience by taking decisive action to secure its position within the digital landscape. Kyber Network’s strategic actions to recover from the security breach demonstrate its commitment to addressing the aftermath and ensuring long-term stability.
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About the author
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
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alice davidson
Alisa is a reporter for Metaverse Post. She focuses on everything related to investing, AI, metaverse, and Web3. Alisa holds a degree in Art Business and her expertise lies in the fields of art and technology. She developed a passion for journalism through writing about VCs, notable cryptocurrency projects, and participating in science writing.
more articles