The Price Of Kyber Network Token Rises Despite $265K Exploit

The price of kyber network crystal (KNC), a utility token for the Kyber Network ecosystem, increased on Friday after a front-end attack was discovered a day earlier that drained at least USD 265,000 from the multi-chain decentralized exchange, aggregator KyberSwap.

KNC was worth USD 1.756 at 09:10 UTC on Friday. The token has gained about 4% in the last 24 hours but has lost 3% in the last seven days. As a result, the token outpaced big currencies such as Bitcoin (BTC) and Ethereum (ETH), which increased by 1% and 3%, respectively, during the preceding day.

According to a message from KyberSwap, an exploit of the DEX aggregator was discovered on September 1, prompting KyberSwap’s developers to shut down the aggregator’s front end. Following an initial analysis, the team discovered “malicious code” in Google Tag Manager. This code “inserted a bogus permission, allowing a hacker to transfer a user’s cash to his address,” according to the warning.

Despite the exploit, the price of kyber network token rises because of the swift action of the team behind it.

KyberSwap’s message went on to reveal that the exploit cost users USD 265,000, but claimed that just two “whale” addresses on the Polygon (MATIC) network were impacted.

“This attack was [a front end] exploit and there is no smart contract vulnerability. For now it is safe to use KyberSwap’s functions, with caution,” the notice added.

It was confirmed in the notice that all affected users will be compensated for any losses.

The Kyber Network staff informed the attacker about the pertinent addresses and conversations in a statement posted on Twitter. “Centralized exchanges were also notified.” “You will not be allowed to pay out unless you expose yourself,” the warning said.

8/ Message to the attacker: We know your addresses and interactions. Centralized exchanges have also been informed. You’ll not be able to cash out without revealing yourself. As a bug bounty, we’re offering you 15% of the funds if you return them.

— Kyber Network (@KyberNetwork) September 1, 2022

Notably, the exploit caused no drop in the price of KNC. Instead, the coin has continued to increase in the market throughout the last day, following the general trend of the crypto market.

One explanation for the market’s unexpected reaction to the breach might be that it looks to be relatively minor in comparison to earlier assaults on DeFi protocols. Other probable factors include the team’s quick response and detailed description of the occurrence, as well as the fact that it has promised to completely repay impacted consumers.

Some Twitter users expressed similar sentiments, with one stating it was a comfort to see that the Kyber Network staff has responded promptly and extremely professionally to the tragedy they encountered.

“Issue is fixed straight away with full compensation,” the user added.

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