Kyberswap To Compensate Exploit Victims As Hacker’s Deadline Gets Closer

The management of the embattled decentralized exchange KyberSwap has made plans to compensate victims of the protocol’s $ 54.7 million exploit. This development comes a few days after the hacker behind the incident demanded full control over the protocol in return for the stolen funds.

Kyberswap Dips Into Treasury To Reimburse Hack Victims

In its master plan for the remuneration of all users affected by the multi-million dollar exploit of KyberSwap Elastic protocol, Kyber Network – the parent company of the exchange – has announced the protocol’s treasury will be giving a grant to each victim equivalent to the USD value of their stolen assets as at the time the heist occurred.

While KyberSwap is a decentralized and permissionless DeFi project whose Terms of Use state that users are responsible for all risks involved in engaging with protocol in any capacity, its management has decided to take this approach and show solidarity and support for their users amidst this turbulent time.

For now, Kyber Network states that plans for the proposed treasury grants are still being finalized, with more details to be released in the next two weeks. In addition, the DEX’s management also reiterated its dedication to an effective collaboration with law enforcement agencies and cybersecurity firms in locating the exploiter as well as full recovery of the stolen funds.

KyberSwap became the latest victim of crypto hacks in 2023 after an exploiter meticulously manipulated the platform’s liquidity before proceeding to drain user funds in the tens of millions. This heist involved multiple well-planned steps, and users’ assets were stolen from several chains that host the DEX, including Base, Polygon, and Arbitrum.

Following the confirmation of the attack, the Kyber Network has since directed users to withdraw all remaining assets on the protocol while it conducts an investigation of the incident. According to data from DefiLlama, KyberSwap’s total valued locked (TVL) declined by 98.28% in the

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Author: Semilore Faleti

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