KyberSwap claims $54.7 million worth of user cryptocurrency stolen in attack


Cryptocurrency platform KyberSwap said Friday that approximately $54 million worth of cryptocurrency was stolen in a cyberattack announced earlier in the week.

In an update released Friday, the company confirmed that the hack occurred Wednesday evening when someone used “a series of complex actions to perform exploitative trades, enabling the withdrawal of user funds in attackers’ wallets.”

In total, around $54.7 million of user funds were exploited by the attackers, they said.

“We have overcome many challenges since our founding in 2017, but these last two days have been by far the most difficult,” they said. said.

“In response, we suspended deposits, launched an investigation, contacted affected parties and entered into negotiations with the attackers with the aim of helping users recover as much as possible, including offering a 10% bonus to incentivize them to return funds used by users. »

The company is now trying to recover the funds, but argued that the incident “stands out as one of the most sophisticated in DeFi history,” noting that the attacker had to “execute a precise sequence of actions on-chain in order to exploit”. the vulnerability.

On Wednesday evening, the company advised users to “promptly withdraw their funds” while it investigated the situation.

The hacker behind the incident posted a message on the blockchain: in writing that “negotiations will begin in a few hours, when I am completely rested.”

In response to the post, a KyberSwap representative said Friday morning that the hacker had carried out “one of the most sophisticated hacks” that “everyone missed.”

“On the table is a bounty equivalent to 10% of user funds withdrawn by your hack, for the safe return of all user funds. But we both know how it works, so let’s get to the point so you and these users can all move on with your lives,” the company said. said.

They provided a contact email for the hacker to contact us.

Several blockchain security companies And researchers confirmed the company’s assessment that the hack was sophisticated.

Blockchain research firm Chainalysis found that 2022 was a record year for hackers targeting cryptocurrency companies, with a total of around $3.8 billion stolen from companies in the sector, compared to $3.3 billion. dollars in 2021.

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Jonathan Greig is a breaking news reporter at Recorded Future News. Jonathan has worked as a journalist around the world since 2014. Before returning to New York, he worked for media outlets in South Africa, Jordan and Cambodia. He previously covered cybersecurity at ZDNet and TechRepublic.

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