KyberSwap plans to offer victims treasury grants after $48.8 million exploit


KyberSwap plans to offer victims treasury grants after $48.8 million exploit

The team behind KyberSwap announced that it will offer grants from the protocol’s treasury to victims of the recent exploit, aiming to provide monetary relief.

“As stated in the terms of use, we are planning grants from the KyberSwap treasury to users to ease the hardship from the loss caused by the exploit,” KyberSwap stated on X.

Victims who lost funds during the exploit will be given a grant from KyberSwap for an “amount up to the USD value of such funds at the time when such funds were drained from their respective liquidity pools,” the team added.

KyberSwap is still working out the details of the treasury grants and will offer more information in during the next two weeks.

The exploit

The KyberSwap exploit on Nov. 22 stemmed from a vulnerability in the tick interval boundaries of its concentrated liquidity pools, allowing an individual to artificially double the liquidity and drain value.

KyberSwap confirmed that $48.8 million had been lost, slightly more than the $47 million in cryptocurrency that initially appeared to have been taken.

In a negotiation attempt, Kyber offered a 10% white hat bounty to the hacker in exchange for returning the funds. However, the hacker showed no interest in accepting the bounty and made other demands in a bizarre on-chain message, including asking the team complete control over the project.

The team separately recovered $4.7 million in funds drained during the hack that were taken separately by third-party MEV bots.


Leave A Reply

Your email address will not be published.