📰📰📰 #KyberSwap Hacked for $46 Million: A Reentrancy Attack Drains #DEFI Exchange 🗞️🗞️🗞️
On November 23, 2023, KyberSwap, a decentralized exchange (DEX), was hacked for approximately $46 million. The attacker exploited a vulnerability in KyberSwap's smart contracts that allowed them to drain funds from the protocol.
How the Hack Happened
The attacker was able to exploit a vulnerability in KyberSwap's smart contracts that allowed them to create a "reentrancy attack." In a reentrancy attack, the attacker is able to call a function in the smart contract multiple times before the first call has completed. This allows the attacker to steal funds from the protocol.
Impact of the Hack
The hack had a significant impact on KyberSwap. The protocol's total value locked (TVL) dropped by over 90%, from $84.9 million to $8.28 million. The price of KyberSwap's native token, KNC, also fell by over 20%.
KyberSwap's Response
KyberSwap's team quickly responded to the hack by taking the following steps:
- Freezing all KyberSwap contracts
- Pausing all trading on KyberSwap
- Recommending that all users withdraw their funds from KyberSwap
The team also launched an investigation into the hack and is working to fix the vulnerability that was exploited.
Negotiations with the Attacker
The attacker has been in contact with KyberSwap's team and has expressed a willingness to negotiate. However, no agreement has been reached at this time.
Conclusion
The KyberSwap hack is a reminder of the importance of smart contract security. DeFi protocols are still a relatively new technology, and there are a number of vulnerabilities that have not yet been discovered. It is important for DeFi protocols to take steps to secure their smart contracts and to be prepared to respond to hacks when they do occur.
