Kyber Network team urges withdrawal of funds amid vulnerability

The DeFi protocol Kyber Network advised liquidity providers to withdraw their funds from the Elastic product after a potential vulnerability was identified.

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Attention KyberSwap Elastic Liquidity Providers:
We have identified a potential vulnerability, and as a precaution we strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible.

Investigations are ongoing and no user funds are lost.

— Kyber Network (@KyberNetwork) April 17, 2023

The team said that user funds were safe and that the bug did not affect Kyber Network’s other solutions.

Developers deactivated KyberSwap Elastic, leaving only the ability to withdraw funds.

“We will provide further information on the situation soon and announce when KyberSwap Elastic will be re-enabled. We apologise for the inconvenience,” the team said.

The Kyber Network Crystal (KNC) governance token barely reacted to the incident — in 24 hours the asset lost 2% in value (CoinGecko).

The total value of funds blocked in Elastic fell from $108.4 million to $52.15 million over 24 hours.

In September 2022, hackers взломали интерфейс non-custodial KyberSwap exchange. User losses totaled 265,000 USDC.

The protocol team addressed the attack vector and compensated all losses to the affected users.