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Cyvers detects abnormal transaction related to Kyber Network exploit

In this post:

  • Cyvers, a blockchain security firm, identified an abnormal transaction linked to a $50 million HXA token transfer, suspecting a Kyber Network exploit.
  • Post-exploit, withdrawals and deposits of HXA tokens were suspended on Gate.io and MEXC exchanges, amidst concerns over the security of funds.

The blockchain security firm Cyvers has recently identified a significant security breach involving the Kyber Network, a prominent platform in the cryptocurrency exchange sector. This discovery comes after a series of high-profile security incidents that impacted various crypto platforms, including KyberSwap, during November.

Cyvers reported an “abnormal transaction” traced back to the culprits behind the Kyber Network exploit. The attackers’ address received approximately $50 million in HXA tokens, the native utility token of the Herencia Artifex NFT project. These tokens were sent from an Ethereum address through an unusual transaction function, raising immediate red flags.

Uncovering the HXA token movement

Further investigation by Cyvers revealed that the received funds were distributed across multiple externally owned accounts (EOAs), notable for being the largest holders of HXA tokens. This movement of funds underscores the complexities and risks associated with cryptocurrency transactions and the importance of robust security measures.

The incident is particularly alarming considering KyberSwap’s recent experience with security breaches, leading to substantial financial losses. Cyvers’ discovery adds another layer of concern for the safety and integrity of transactions within the Kyber Network and the broader cryptocurrency exchange community.

Responses and Implications

In response to these developments, significant measures have been taken by various stakeholders. Cyvers has called for additional information and collaboration in investigating the exploit further. Additionally, cryptocurrency exchanges Gate.io and MEXC have suspended withdrawals and deposits of HXA tokens, although it remains unclear if this decision is directly related to the security concerns stemming from the exploited funds.

Compounding the issue, the official website for the HXA coin is currently inaccessible, adding to the uncertainties surrounding the situation. This unavailability raises questions about the operational status of the Herencia Artifex NFT project and its implications for HXA token holders.

The potential link of the Kyber Network exploit to a vulnerability in the Multicall function, as suspected by Cyvers, points to broader concerns about the security of smart contract implementations in the crypto world. It highlights the need for constant vigilance and advanced protective measures against increasingly sophisticated cyber threats.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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