The decentralized platform, KyberSwap, recently experienced a serious issue. An exploit led to the loss of roughly $46 million in different cryptocurrencies. KyberSwap provided an update on X about the attack, which targeted KyberSwap Elastic. They promptly advised users to withdraw their funds.
At the same time, the occurrence prompts inquiries into the weaknesses present in decentralized finance platforms. KyberSwap, a highly recognized platform from Kyber Network, suffered a major security problem. They lost approximately $46 million in crypto assets.
This issue impacted the KyberSwap Elastic protocol, leading to a steep decrease in the platform’s total locked value (TVL). DeFiLlama data presented that the platform’s TVL dropped around 70% in a few hours. The latest numbers showed the platform’s TVL fell from $84.9 million to $14.32 million shortly after the news spread.
Users of KyberSwap got quick alerts to take out their money for safety. At the same time, experts studying the blockchain saw messages left by the attacker. They hinted at talks with the developers of the protocol, workers, DAO members, and those who provide liquidity.
KyberSwap Fallout: Losses Ripple Beyond, KNC Token Price Dips Amidst Regulatory Scrutiny
As per DeBank’s data, the main assets affected in this attack are Arbitrum (ARB), Optimism (OP), Ethereum (ETH), and Base. A detailed look shows a loss of about $18.85 million in Arbitrum. Next, Optimism lost $15.36 million, and Ethereum lost $7.44 million.
Effects of the exploit reached further than KyberSwap, touching the larger crypto community. The token prices for Kyber Network Crystal (KNC) had a short drop, showing how the market reacts to such events. The event adds more to the ongoing checks by regulators that major crypto exchanges face.
The Kyber Network Crystal v2 has dropped 2.86% in the last day, trading at $0.72. Its trade volume skyrocketed by 154.39% to $58.48 million from yesterday. The crypto hit a low at $0.7202 in the past 24 hours.
In the unpredictable crypto world, security problems, regulatory requirements, and leadership shifts could happen. The recent event at KyberSwap paints a clear image of the rising threats in the decentralized finance (DeFi) field. Investors and those in the industry are advised to stay alert for any potential weak spots in the DeFi ecosystem.
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