Decentralized exchange (DEX) protocol KyberSwap has fallen victim to a major hack, resulting in the loss of approximately $47 million worth of cryptocurrency assets. The attack targeted and drained liquidity pools leading to a significant decrease in total value locked (TVL).

This recent security breach is another blow to the crypto industry, following closely after the HECO chain bridge incident that saw an $86 million exploit. The hacker managed to siphon off $20 million in WETH, $4 million in ARB, and $7 million in wstETH from KyberSwap’s liquidity pools.

KyberSwap has urged its users to withdraw their funds as a precautionary measure in light of the breach. Although the security incident did not affect its aggregator, the protocol is diligently investigating the situation. The exploit is attributed to tick manipulation and double liquidity counting, ultimately resulting in a flash loan attack. The hacker executed swaps and manipulated prices and ticks of targeted liquidity pools, leading to the draining of the pools.

The stolen funds, including assets like wrapped Ether (wETH), Arbitrum (ARB), and wrapped Lido-staked Ether (wstETH), are spread across platforms such as Ethereum, Arbitrum, Optimism, Polygon, and Base. Subsequently, KyberSwap’s TVL plummeted to $13.61 million from over $83 million before the exploit. Additionally, the Kyber Network Crystal (KNC) token experienced a 3.1% decline, trading at approximately $0.722 at the time of writing.

KyberSwap exploited – what happened?

KyberSwap alerted its users to the exploit early Thursday, advising that customers withdraw their funds as a precaution. The exploit was the result of tick manipulation and double liquidity counting, leading to a flash loan attack that resulted in the draining of the liquidity pools.

For more information, refer to the original article: DEX protocol KyberSwap hacked for $47 million

FAQ

How much was KyberSwap hacked for?

KyberSwap was hacked for approximately $47 million.

What assets were stolen in the hack?

The stolen assets include $20 million in wrapped Ether (wETH), $4 million in Arbitrum (ARB), and $7 million in wrapped Lido-staked Ether (wstETH).

How did the hack impact KyberSwap’s total value locked (TVL)?

Following the hack, KyberSwap’s TVL sharply fell to $13.61 million, down from over $83 million before the exploit.

What was the price of the Kyber Network Crystal (KNC) token at the time of writing?

At the time of writing, the Kyber Network Crystal (KNC) token was down 3.1% and trading near $0.722.