KyberSwap, a renowned multichain DEX (Decentralized Exchange), announced on September 1st that it suffered a frontend attack. The attacker stole crypto worth $265,000. The exchange is willing to pay a reward of 15% if the attacker returns funds.
KyberSwap to Compensate Users Who Lost Funds
Following the attack, KyberSwap informed users that it would compensate those who lost their funds. Also, the DeFi liquidity platform offered a reward of 15% to the hacker if the hacker sent the funds back.
According to the platform, they had noticed the exploit when they identified a malicious code in their GMT (Google Tag Manager). This code gave a false approval which allowed the attacker to send the user’s crypto funds to his wallet address.
The company’s official post further explained the attacker targeted whale accounts with huge funds. Unfortunately for the hacker, the KyberSwap team were able to neutralize the exploit within two hours.
“After carrying out further checks, we found no suspicious activity on the platform. Hence, disabling the GTM must have eliminated the bad script. The hacker injected the script into the platform targeting mainly whale accounts with huge funds,” the post stated.
KyberSwap Offers a 15% Reward
Additionally, the team compiled a list of the affected addresses. They found that the attack affected only two wallet addresses. Going forward, the security team advised users to be cautious of their activities on the exchange.
The team also urged other DeFi platforms to check their GTM scripts and frontends. Meanwhile, KyberSwap said it would only pay the 15% reward if the hacker returned the funds and spoke with the team.
Notably, the DeFi platform revealed it has tracked down the addresses of the hacker. It also uncovered an OpenSea account.
Furthermore, the network said it has reached out to various exchanges. This ensures that the hacker finds it difficult to withdraw the stolen crypto funds without unveiling their identity.
FBI Advises Investors and DeFi Platforms
In 2022, there were numerous attacks on DeFi platforms and the crypto community in general. According to Chainalysis, hackers stole over $1.9 billion from crypto platforms in the first half of 2022. This is higher than the $1.2 billion stolen at the same time last year.
A news report recently revealed that over $5 million worth of crypto assets were stolen in the Solana attack. This was linked to the Slope wallet attack.
Earlier this week, even the United States FBI advised investors to be cautious of investing on DeFi platforms. The agency also asked agencies to run periodical checks on their platforms. These checks would allow them to notice loopholes and bugs before hackers do.