Kyber Network Laysoff 50% Workforce to Recover from $46.5M Security Breach Loss
In Brief
Kyber Network layed off 50% of workforce and suspended KyberAI and Kyber Network projects to recover from the $46.5 million security breach.
Multi-chain cryptocurrency trading and liquidity hub Kyber Network had encountered a security breach, resulting in a loss of $46.5 million in digital assets due to an exploit on its KyberSwap facility earlier this year.
The attacker stole $46.5 million in various digital assets, including 10,049 units of Wrapped Ethereum (WETH) valued at around $20.78 million, 4,017 units of Lido-wrapped staked Ethereum (wstETH) worth approximately $9.53 million, and about 3.98 million units of the Layer 2 scaling solution Arbitrum (ARB), totaling $4.1 million.
Following the security breach, Kyber Network’s chief executive officer, Victor Tran, implemented measures to protect the platform’s users and future. The platform cut its workforce by 50% and launched the KyberSwap Elastic Exploit Treasury Grant Program, aiming to cover up to 100% of user losses.
Additionally, the network has temporarily halted specific initiatives. Kyber Network, an on-chain liquidity protocol, facilitating decentralized token swaps integration into applications and enabling value exchange among ecosystem participants, was suspended.
The KyberAI project, which offers KyberSwap users market data for trading decisions, has also been halted. The suspension of these initiatives is part of a strategic refocusing effort aimed at addressing the aftermath of the security breach.
Despite these efforts and the market’s generally stable reaction, the native token of Kyber Swap, Kyber Network Crystal (KNC), remained relatively steady, trading at around $0.72 at the time of writing, underscoring the resilient nature of the DeFi market and the confidence investors have in Kyber Network’s long-term vision.
Security Vulnerabilities in DeFi Projects Raise Concerns
In the rapidly expanding realm of decentralized finance, security vulnerabilities have become a paramount concern, with recent incidents shedding light on the risks associated with even well-established projects.
In the recent development, the decentralized financial platform Telcoin encountered a vulnerability attack, resulting in an approximate loss of $1.3 million and a 43.25% decline in the platform’s native token TEL within a 24-hour period. The platform stated its efforts to counter the attack and promised to provide updates to users once the situation is resolved.
In the face of escalating cyber threats, Kyber Network exhibits resilience by taking decisive actions to secure its position within the digital landscape. Kyber Network strategic measures to recover from a security breach, demonstrate its commitment to addressing the aftermath and ensuring its long-term stability.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
