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Kyber Network takes bold steps to rebuild after security breach

TL;DR

  • Kyber Network is rebounding after a security breach by cutting its workforce and focusing on core functions.
  • They’re launching Zap API to improve DeFi accessibility.
  • Kyber rejected hacker demands, pledging to reimburse users and collaborate with authorities to recover funds.

Decentralized Finance (DeFi) firm Kyber Network is determined to bounce back after a recent security breach, pledging to reimburse affected users while rejecting the hacker’s audacious demands to take control of the company. 

Victor Tran, CEO and co-founder of Kyber Network, announced a significant workforce reduction of 50% on December 24 as part of the company’s ongoing efforts to rebuild its operations following a massive security breach in November. 

Despite these challenges, Kyber Network remains committed to its core functions and plans to launch a new service to bridge users to liquidity protocols.

Kyber Network ongoing rebuilding efforts

In the wake of the security breach that rocked Kyber Network in November, CEO Victor Tran has taken a bold step by announcing a 50% reduction in the company’s workforce. 

This decision, although undoubtedly challenging, is a key part of the company’s strategy to rebuild and strengthen its operations post-exploit. Kyber Network is resolute in its commitment to overcome recent setbacks and ensure the sustainability of its platform.

The workforce reduction is accompanied by a temporary halt on certain initiatives, including Kyber’s liquidity protocol initiatives and KyberAI.

However, it’s important to note that the company’s core aggregator and limit order functions remain fully operational. Tran emphasized that Kyber Network will continue to exist and develop, demonstrating a strong determination to recover and move forward.

Despite the hurdles it has faced, Kyber Network remains forward-looking. The company is set to launch the Zap API, a new service that will play a pivotal role in the DeFi ecosystem.

This service will allow decentralized applications, crypto wallets, and other DeFi projects to conveniently bridge their users to liquidity protocols. This move signifies Kyber Network’s commitment to enhancing accessibility and usability within the DeFi space.

Supporting departing team members and rebuilding trust

In addition to its operational adjustments and innovations, Kyber Network is also focusing on supporting its departing team members. The company is in the process of creating a ‘voluntary database’ to aid these members in finding new career opportunities and connecting them with peer projects in the industry. 

This initiative reflects Kyber Network’s dedication not only to its users but also to its team, fostering trust and solidarity within the DeFi community.

The security breach in November led to a confirmed loss of over $48 million in crypto assets for Kyber Network. In the aftermath of this successful asset seizure, the hacker responsible issued a series of audacious demands. 

These demands included seeking complete operational control of the company, temporary ownership of the KyberDAO governance mechanism, and access to comprehensive financial details, investor information, employee salaries, and other sensitive information relevant to the operations of Kyber Network.

However, Kyber Network stood firm and resolutely rejected these demands. Instead of yielding to the hacker’s wishes, the company made a commitment to fully compensate affected users through the KyberSwap Elastic Exploit Treasury Grant Program. 

Furthermore, Kyber Network is actively collaborating with authorities to identify the hacker and recover the stolen funds. This unwavering stance reinforces the company’s commitment to the integrity and security of its platform and user community.

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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James Kinoti

A crypto enthusiast, James finds pleasure in sharing knowledge on fintech, cryptocurrency as well as blockchain and frontier technologies. The latest innovations in the crypto industry, crypto gaming, AI, blockchain technology, and other technologies are his preoccupation. His mission: be on track with transformative applications in various industries.

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