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Explained: How KyberSwap’s frontend exploit neutralized with only a loss of $256K

KyberSwap
TL;DR Breakdown
  • Multichain DEX KyberSwap has faced losses due to an exploit.
  • The official statement says that the exploit happened at the frontend.
  • The amount lost is about $256,000, while those affected will be reimbursed.

DeFi exploits have become common and are one of the leading reasons for the bearishness in the crypto market. A recent incident happened with KyberSwap, a multi-chain DEX, whose frontend was compromised, but the team made timely decisions and controlled losses on time.

Though the network has faced losses, these are still lower if compared to how much they would have been if the frontend had remained compromised. The team has shared a detailed report of the incident. The official statement says they have identified the addresses linked to the exploit. While they have also promised reimbursement for those, who were affected.

Here is a brief overview of the incident that could have caused a huge loss to KyberSwap and how it was neutralized.

KyberSwap frontend exploit

KyberSwap became the latest victim of an exploit, causing loss of a considerable amount. The said DeFi liquidity hub is run by Kyber Network. The decentralized network (DEX) disclosed in a Twitter thread on Thursday that its team has identified an exploit on the frontend. The exploit was later neutralized, but the attack resulted in considerable losses, amounting to $256K.

According to the information available, the said sum was stolen from two whale accounts. As the team resolved the issue, there is little threat to the users. The platform assured that the issue had been resolved and users could utilize the network for their uses. The network cautioned the users, so they don’t fall prey to some untoward incident.

The announcement asked the users to exercise caution and don’t approve any requests that appear malicious. They have shared detailed instructions on a medium blog post to keep the customers safe. Thus, the users will be able to use KyberSwap safely without losing their sum.

According to the available information, the main target was whale wallets. The attacker would have taken much if the team hadn’t prevented it in time. Kyber Network team resolved the issue within two hours, thus saving a huge amount from being lost.

Losses incurred and other details

KyberSwap revealed that the problem was with Google Tab Manager. The malicious code in the GTM made it possible for the attackers to get access to the whale wallets. Thus, a total of $256K was lost, minimizing the losses considerably. What makes this exploit special is the claim that the KyberSwap team has said they have full details of the attackers.

These details include addresses associated with the hacker, while the OpenSea account related to the incident was also identified. The liquidity hub has warned other DeFi platforms because the GTM code problem might have affected them. In the Twitter thread, the platform said they are in contact with multiple exchanges. Thus, the hacker will be unable to cash out the funds and ultimately be caught.

The year 2022 proved ripe for hackers as a whooping amount of $1.9 billion has been lost to hackers. The data for 2021 shows that hackers took about $1.2 billion. The management of KyberSwap has ensured that the affected users in the recent exploit will be compensated. While it has also assured the rest of the users that their funds are safe. They have also said that there is no vulnerability issue in the smart contract.

Conclusion

A multi-chain DeFi hub KyberSwap has become the latest victim of an exploit. The management said that they prompted a response soon, and the exploit was neutralized in two hours. The fronted exploit on KyberSwap affected two addresses, and a total of $256K has been lost to attackers. 

Haseeb Shaheen

Haseeb Shaheen

As a Web Researcher and Internet Marketer, Haseeb Shaheen delivers relevant valuable content for audiences. He focuses on financial and crypto market analysis, as well as technology-related areas that help people change their lives.

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