The KyberSwap team announced that it will provide grants from the protocol treasury to victims of recent attacks, with the goal of providing financial relief.
“As stated in our Terms of Use, we plan to issue subsidies to users from the KyberSwap Treasury to mitigate losses resulting from exploits,” KyberSwap said. X.
Victims who lost funds due to the exploit will be provided with a grant from KyberSwap “up to the USD value of those funds at the time those funds were depleted from their respective liquidity pools,” the team added.
KyberSwap is still working out the details of the financial grants and will provide more information over the next two weeks.
exploit
The KyberSwap exploit, which occurred on November 22, stemmed from a vulnerability in the tick interval boundary of a concentrated liquidity pool, allowing individuals to artificially double liquidity and outflow value.
KyberSwap confirmed that $48.8 million was lost, slightly more than the $47 million in cryptocurrency that initially appeared to have been stolen.
In an attempt to negotiate, Kyber offered the hackers a 10% white hat bounty in exchange for returning the funds. However, the hacker was not interested in collecting the bounty and made other demands through bizarre on-chain messages, including asking the team for complete control over the project.
The team separately recovered $4.7 million in funds stolen by third-party MEV bots during the hack.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.
About the author
MK Manoylov has been a reporter for The Block since 2020, joining just before Bitcoin surpassed $20,000 for the first time. Since then, MK has written nearly 1,000 articles for publications covering all cryptocurrency-related news, preferring NFTs, metaverse, web3 games, fundraising, crime, hacking, and cryptocurrency ecosystem stories. MK holds a graduate degree from New York University’s Science, Health, and Environmental Reporting Program (SHERP) and has also covered health topics for WebMD and Insider. X You can follow MK at @MManoylov and on LinkedIn.