KyberSwap Elastic Suffers Major Security Breach, $46 Million Lost in DeFi Exploit

Published: November 23, 2023 at 4:43 am Updated: November 23, 2023 at 4:44 am

Edited and fact-checked:
November 23, 2023 at 4:43 am

KyberSwap Elastic Suffers Major Security Breach, $46 Million Lost in DeFi Exploit

Decentralized exchange (DEX) aggregator KyberSwap Elastic became the latest victim in a series of decentralized finance (DeFi) security breaches. The platform experienced a significant security incident, impacting all supported networks.

This led to an urgent advisory for users to withdraw their funds. The incident caused a substantial loss, compromising approximately $46 million in various crypto assets. These assets included Wrapped Ether among others.

The security breach was first announced by the Kyber Network team on Twitter. They informed users of KyberSwap Elastic about the incident and advised them to promptly withdraw their funds as a precautionary measure.

This alert was echoed by Lido Finance, expressing support and concern for the KyberSwap community and those affected by the exploit.

KyberSwap Elastic has experienced a security incident affecting all supported networks.

Please refer to @KyberNetwork for any official updates and developments.

Sending best wishes and support to the KyberSwap community and any affected LP. https://t.co/gf3I4xVdmO

— Lido (@LidoFinance) November 23, 2023

Details of the KyberSwap $46 Million Exploit

Blockchain analysts pinpointed the affected and exploiter wallet addresses, which remained active following the incident. Debank data revealed the stolen assets amounted to around $46 million. This included about $20 million in Wrapped Ether (wETH), $7 million in wrapped Lido-staked Ether (wstETH), and $4 million in Arbitrum (ARB).

The attackers dispersed the funds across multiple chains, including Arbitrum, Optimism, Ethereum, Polygon, and Base, underlining the attack’s expansive nature.

The Kyber Network team is actively investigating the situation and has committed to providing regular updates to its users. The incident starkly reminds us of the vulnerabilities in the DeFi sector.

It highlights the importance of robust security measures to protect assets in the fast-evolving crypto market. This exploit emphasizes the challenges decentralized platforms encounter in securing their networks. It also underscores the difficulty in safeguarding the assets users entrust to these platforms.

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About The Author

Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master’s degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.

Nik Asti