KyberSwap Suffers $46 Million Heist, Total Value Locked Plummets by 68%+
KyberSwap Hit by Massive DeFi Heist, Loses Over $46 Million
In an unfolding DeFi disaster, decentralized exchange (DEX) aggregator KyberSwap has found itself on the receiving end of a colossal security breach, draining a staggering $46 million from the protocol.
KyberSwap took to official channels, confirming a security breach on KyberSwap Elastic, their auto-yield compounding liquidity markets, and advising users to withdraw their assets while the team conducts an investigation.
Fortunately, the aggregator itself managed to escape the hack unscathed and continues to operate as usual. However, the attack hit multiple chains hard, with Ethereum, Arbitrum, Optimism, Polygon, and Base each taking a hefty blow. The most substantial losses were recorded on Arbitrum ($20 million), Optimism ($15.3 million), and Ethereum ($7.5 million).
After the successful exploit, the hacker left a taunting message for KyberSwap, hinting that negotiations would commence shortly. The stolen funds now reside in a sinisterly active single address that remains active across various networks.
The breach has sent shockwaves through the KyberSwap community, causing a whopping 70% decline in Total Value Locked (TVL). The TVL plummeted from $85 million prior to the hack to a paltry $14 million now.
While attempting to navigate the aftermath, it's essential to remember that KyberSwap has faced adversity in the past. In November 2023, a heist netted the hacker a whopping $47 million, but the recovery process remains undisclosed.
Historically, negotiations have often been part of the fallout from such incidents, and a bounty offer has become a common strategy for recovery. However, in some cases, such as the Abracadabra exploit in April 2025, stolen funds remain scattered across addresses without any significant laundering detected.
As the investigation into the latest DeFi attack on KyberSwap continues, it's crucial to keep monitoring the situation for updates. For now, KyberSwap urges its users to stay vigilant and follow the platform's recommendations for securing their assets.
Also Reading: MetaMask Partners with Kyber Network to Add KyberSwap DEX
- Despite the recent breach on KyberSwap Elastic, the KyberSwap DEX continues to function as expected, further emphasizing its resilience amid adversity.
- The KyberSwap-MetaMask partnership, announced earlier this year, is poised to offer a secure and seamless integration for decentralized finance (DeFi) transactions, potentially bolstering the platform's security measures post-breach.
- As cybersecurity remains a top priority in the rapidly evolving technology-driven business of DeFi finance, the impact of this breach serves as a stark reminder of the need for vigilance and ongoing upgrades in cybersecurity measures.
- In the wake of the KyberSwap breach, it's worth exploring the potential benefits that aggregators like KyberSwap can offer in terms of reduced slippage, execution speed, and access to a diverse range of DeFi protocols within the Ethereum ecosystem, making it an attractive option for users despite recent setbacks.
- Regardless of the recovery process and ongoing negotiations, smart contracts on blockchain technology provide an invaluable opportunity for transparency in financial transactions, fostering trust and promoting the growth of the broader DeFi and crypto-business community.
