Home » KyberSwap suffers hack worth over $45 million, protocol’s TVL collapses

KyberSwap suffers hack worth over $45 million, protocol’s TVL collapses

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Decentralized exchange KyberSwap suffered a hack last night, resulting in the theft of over $45 million worth of cryptocurrencies. At the same time, DEX users have largely withdrawn their liquidity from the protocol, causing it to fall by 83%.

KyberSwap’s DEX suffers major hack

This night, Kyber Network’s teams alerted their community to withdraw their liquidity present on the decentralized exchange (DEX) KyberSwap, due to a hack:

While it’s not yet known which breach caused the loss of funds, the value of the theft is estimated at between $45 and $47 million, depending on the time of day and the prices of the cryptocurrencies involved:

DeBank data shows that the incriminated wallet has funds spread over several blockchains, consisting mostly of ETH and derivative versions thereof:

Wallet involved in KyberSwap hack

Wallet involved in KyberSwap hack

DefiLlama founder

0xngmi observed that the attack had apparently targeted only the funds of the protocol’s liquidity providers. As a security measure, the KyberSwap aggregator was nevertheless temporarily removed from LlamaSwap, although Kyber Network teams have since clarified that it was not impacted:

On the other hand, this incident also had disastrous consequences for the total locked-in value (TVL) present on the DEX. In addition to the stolen funds, users massively withdrew their positions, causing the TVL to fall by over 83% in one day at the time of writing.

The TVL fell from $84.9 million to $14.32 million. As for the Kyber Network ecosystem token KNC, it recorded a loss of 2.8% over the last 24 hours, trading at $0.72 each.

For the time being, Kyber Network has not provided any further information, but until it does, it is recommended that you withdraw your liquidity from the protocol, as well as from any forks of it, should the same flaw be present and exploited on it. On X, on-chain investigator Spreek cited HorizonDex operating on layers 2 Linea and Base.

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