KyberSwap Pledges Treasury Grants in Response to $48,000,000 Hack

Published: Dec 2, 2023
Written By:
Vignesh Karunanidhi
Milk Road Writer

Decentralized cryptocurrency exchange KyberSwap has pledged ongoing assistance to users and law enforcement following a devastating hack last week that resulted in nearly $50 million being stolen. The platform said it understands many are facing hardship and promised grants to affected users.

On November 22, an exploiter took advantage of a vulnerability in KyberSwap’s Elastic protocol to drain $48.8 million from liquidity pools. In a tweet, the exchange reiterated its commitment to:

  • Supporting law enforcement to track the hacker and recover funds
  • Providing users with grants from the Treasury to ease hardship from losses
  • Assisting users facing challenges during this difficult period

KyberSwap vows to stand by the community

KyberSwap said that as a permissionless platform, users accept inherent risks. Nevertheless, the exchange aims to stand by the community, especially those impacted who may be undergoing personal financial turmoil.

While details are still forthcoming, KyberSwap plans to grant treasury grants up to the USD value lost by each user at the time of the breach. An update will come in the next two weeks.

KyberSwap said its focus is now on recovering assets and supporting those dealing with the fallout. The team hopes to mitigate damage by tapping its resources to help make victims whole. The tweet from the team also follows the recent demands from the hacker, including complete control of the firm.

The incident follows other major breaches this year. Crypto hacks soared in November, with reports showing that more than $343,000,000 was stolen via various exploits. Poloniex, Heco Chain, HTX Exchange, and Kronos Research were other victims of hacks in November.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 5 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.