By: Eva Baxter
Decentralized exchange, KyberSwap, revealed plans to compensate users affected by a recent exploit, which led to the loss of $48.8 million in user funds. The platform announced on Dec. 1 that it will distribute grants matching the USD value of lost assets.
The attack occurred in late November, targeting the exchange's elastic liquidity pools. Interestingly, Kyber has already recovered $4.7 million of the stolen funds, seized by third-party MEV bots during the hack. This compensation effort underlines a significant attempt within the DeFi community to preserve user trust following security breaches.
Despite the hack, KyberSwap is supporting law enforcement and cybersecurity teams in their efforts to identify and retrieve any stolen funds. The hacker showed interest in negotiations by demanding full control over the platform after the attack. It remains unclear whether KyberSwap will engage in discussions with the attacker or offer a bounty for the funds return.
These details come after ongoing security concerns for KyberSwap, which experienced a front-end hack in September 2022 resulting in a $265,000 loss. The platform's security around its liquidity pools was called into question as early as April.
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