KyberSwap, a decentralized exchange system, recently reported a significant hack. Here are some key details:♦️ The hack resulted in a loss of approximately $46 million.♦️ The funds were abruptly transferred from protocol-associated wallets into a single wallet.♦️ The exploit targeted funds within KyberSwap’s Elastic Pools liquidity solution.♦️ KyberSwap urged all users to promptly withdraw their funds as a precautionary measure.♦️ This is not the first time KyberSwap has been targeted. In a previous incident, KyberSwap suffered a frontend exploit, resulting in a loss of $265,000. ♦️ In response to that incident, KyberSwap offered a 10% bounty — of roughly $40,000 — to the hacker as means to remediate the situation.⏺️ How The Protocol Was Hacked ?The reason behind the KyberSwap hack was the exploitation stemming from tick manipulation and double liquidity counting. Similar to the bug that earned 100proof a $1 million bounty, the attacker utilized a flash loan to drain pools with minimal liquidity. By strategically manipulating prices and ticks within targeted pools, they executed various swap steps and cross-tick operations, resulting in the double counting of liquidity and ultimately draining the pools.⭕ Attack Impact Across NetworksArbitrum: $20MOptimism: $15MKyber Mainnet: $7.5MPolygon: $2MBase: $315K🔘 Impact Of The Hack According to DefiLlama data, KyberSwap’s total value locked (TVL) dropped by 68% in a matter of hours, and about $78 million left the protocol as a result of the attack and user withdrawals. Its TVL is currently $27 million, down from a peak of $134 million in 2023.☢️ The hacker’s demandsThe following appeared in a transaction that the perpetrator purportedly sent: “Dear Kyberswap Developers, Employees, DAO members, and LPs, Negotiations will start in a few hours when I am fully rested. Thank you.” In addition, the perpetrator sought out, “How is Ontario this time of year?”🛑 2022 Kyberswap Hack The KyberSwap hack in September 2022 was a significant event in the DeFi space. Here are some more details about the incident:♦️ The attacker exploited the frontend of the KyberSwap website. This was different from many DeFi hacks, which typically target smart contracts.♦️The attacker injected malicious code into its Google Tag Manager, which supports the site’s Google Analytics.♦️This allowed the hacker to transfer the user’s funds into their own wallet.The malicious code was designed specifically to target whale wallets containing large amounts of cryptocurrency. ♦️When a user attempted to perform a transaction on the Kyber Network platform using one of these high-value wallets, the malicious code would modify the transaction to include approvals for the attacker’s address.♦️The attacker could then use these approvals to drain value from the high-value wallets. The attacker successfully stole a total of $265,000 worth of Aave Matic interest-bearing USDC (AMUSDC) in 4 transactions from one wallet on Polygon.♦️Another wallet was targeted but managed to revoke the malicious approvals before the attacker could use them to drain funds. After the Kyber Network team identified the issue, they disabled the GTM and restored normal operations within two hours.♦️The affected wallet has also been fully compensated, and, with the help of Binance, has identified two parties involved in the attack.Source - 1. Kyberswap2. Defillama 3. Dune4. Twitter5. Cointelegraph 6. Binance #KyberSwap ✖️ More Alpha, Join Us, Follow Us, Share Us ✖️ @Techandtips123