Security • November 22, 2023, 6:32PM EST
Published 1 minute earlier on
Quick Take
- Unexpected wallet movements suggest KyberSwap has suffered a $47 million exploit.
- The funds seem to have been drained from liquidity providers.
Decentralized exchange protocol KyberSwap appears to have suffered a $47 million exploit, according to on-chain data. Funds have been unexpectedly moved from wallets associated with the protocol into a single wallet, as first pointed out by a user known as Spreek on X. The funds include $20.7 million Arbitrum, $15 million on Optimism, $7 million on Ethereum, $3 million on Polygon and $2 million on Base. A large portion of the funds are denominated in various forms of ether, such as wrapped tokens and liquid staking tokens, as well as other tokens including arbitrum (ARB) and various stablecoins. "I looked into the [transaction] and dont think it's an approval issue with kyber aggregator, seems like hacker is just draining the kyber [liquidity provider] pools," noted 0xngmi, a pseudonymous employee at crypto data site DefiLlama, on X. He added that the total value locked in the protocol is $72 million. This doesn't appear to have been affected. "Looks like the Kyber exploits is flash loans and some sort of math/rounding issue. Each [transaction] is starting with an ETH balance coming in, looped mint/redeem/swap," noted Adam Cochran, general partner at Cinneamhain Ventures, on X. We have reached out to Kyber Network for comment. Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures. © 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
About Author
Tim is the Editor-In-Chief of The Block. Prior to joining The Block, Tim was a news editor at Decrypt. He has earned a bachelor's degree in philosophy from the University of York and studied news journalism at Press Association Training. Follow him on X @Timccopeland.
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