KyberSwap Elastic, a vital project of the Kyber network, brings encouraging news to its users. The team has made significant progress in its recovery journey, successfully reclaiming approximately $5.7 million in stolen cryptocurrency. This achievement highlights KyberSwap Elastic’s commitment to its users and its resilience to digital security challenges.
Details of the Recovery
Blockchain security firm PeckShield reported that about 361,876 USDC.e, a digital currency, was returned to KyberSwap on the Avalanche blockchain. This return is linked to one of the individuals involved in the recent security breach.
Additionally, the KyberSwap team negotiated with the operators of certain automated trading programs, known as front-run bots. These negotiations led to the return of nearly $4.67 million to KyberSwap’s digital wallet on the Polygon blockchain. This was part of a deal where the bot operators kept a 10% bounty for returning 90% of the stolen funds.
Understanding the Hack
On November 23, KyberSwap Elastic fell victim to a sophisticated digital attack. Hackers manipulated the platform’s smart contracts, a blockchain-based agreement, to unlawfully withdraw user funds. The total value of exploited funds reached around $54.7 million. In response, KyberSwap immediately halted deposits and initiated a detailed investigation. They also offered a 10% reward to the hackers for returning the stolen funds.
Ongoing Security Measures
The KyberSwap team is vigorously working to recover as much of the stolen funds as possible. They have implemented extensive security measures, including internal checks, audits by renowned security firms, and community-driven security reviews. These efforts aim to not only recover the funds but also to strengthen the platform against future attacks.
Conclusion
This incident is one of the most intricate in the decentralized finance (DeFi) sector, requiring a complex sequence of actions to exploit the system. The KyberSwap team remains dedicated to maximising fund recovery and enhancing the platform’s security, hoping to emerge stronger from this challenge.
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