Kyber Network Announces 100% Reimbursement for Users
Kyber Network plans to use its project funds to compensate users affected by the mid-November KyberSwap hack.
On the evening of December 1st, Kyber Network, the operator behind the DEX KyberSwap, released an update on their handling of the damages from the recent attack. The hack, which occurred two weeks ago, resulted in over $47 million in user assets being stolen.
Commitment to User Compensation
Kyber Network maintains its stance on cooperating with authorities to identify and recover the stolen funds. This signifies their refusal to comply with the hacker's demands. As previously reported by Coin68, the hacker had issued an ultimatum on November 30th, stating they would return the funds if the project handed over all its assets and resources, essentially seeking control over Kyber Network.
In relation to the KyberSwap Elastic incident that transpired from 22 November 2023, 10:54:09 PM UTC, resulting in the exploitative swaps by the exploiter that drained approximately $48.8 million of users’ funds from KyberSwap Elastic liquidity pools, we reiterate our unwavering…
— Kyber Network (@KyberNetwork) December 1, 2023
Reimbursement Plan
Kyber Network has decided to use its funds to compensate users for the value of their lost assets in USD at the time of the hack, committing to a 100% reimbursement. Despite KyberSwap being a decentralized project where users are expected to understand the risks involved, the project has chosen to take on the financial burden to support its affected users.
This hack is terrible, it kills passion and innovations of people who are doing all their best to contribute and the innocent users. Let @KyberNetwork be the last to deal such attack and the only to take the hit.
— Victor Tran (@vutran54) December 1, 2023
What we should do is figuring out how DeFi becomes safer.
And… https://t.co/xqiuiVxUn6
Details of the reimbursement process will be disclosed within the next two weeks.
Official Statements
Victor Tran, CEO of Kyber Network, emphasized that only the project should bear the losses from the attack, asserting that users "deserve the best."
Additionally, Tran mentioned that Kyber Network is currently working with only one partner to address the situation, the Vietnam Blockchain Association (VBA).
Market Reaction
The price of KNC, Kyber Network's token, has shown a slight positive reaction to the news of the 100% user compensation plan following the KyberSwap hack.
1-hour chart of KNC/USDT on Binance as of 12:25 AM on December 2, 2023.
This article provides an update on Kyber Network's response to the KyberSwap hack, highlighting their commitment to user compensation and ongoing efforts to recover the stolen funds.
