Kyber Network has plans to compensate users who suffered losses in the recent KyberSwap Elastic incident, which resulted in approximately $48.8 million being drained from KyberSwap Elastic liquidity pools.
Due to the recent exploit, KyberSwap is issuing an $KNC compensation distribution to all users
Additional liquidity has also been added to process withdrawals
All users who have interacted with KyberNetwork are eligible
— Kyber Network (@KybcrNetwork) November 26, 2023
The incident took place on November 22, 2023, when an attacker manipulated the KyberSwap Elastic smart contract through a series of complex operations.
KyberSwap has expressed its commitment to collaborate with law enforcement and cybersecurity experts to track down the exploiter and facilitate the recovery of funds for affected users.
Kyber Network is developing a plan to extend grants from the KyberSwap Treasury to affected users to alleviate their financial strain.
The proposed plan involves offering a grant to each user who lost funds in the exploit and whose funds have not been recovered, equivalent to the USD value of their drained funds at the time of the incident.
The details of this Treasury grant are currently under careful consideration, with Kyber Network committed to providing further information within the next two weeks.
It was reported that the KyberSwap hacker is now demanding full control of the company after negotiations did not go smoothly.