- Kyber Network, a DeFi and crypto liquidity hub, was attacked on September 1.
- The hackers wiped 265,00 USD from the ecosystem.
- CertiK predicted that the blockchain attacks will increase by 3.23X.
Situation in Control of Kyber Network
Attackers in the cryptosphere have raised a lot of concern among the community and the organizations in space. This raises a lot of questions on the blockchain as the companies are admiring and adopting the technology at a faster rate globally. Recently, attackers exploited Kyber Network, a liquidity hub for DeFi and crypto. The hackers wiped out 265K USD via an attack vector on September 1, 2022. An attack vector acts as a bridge for the hackers, creating a path to gain access to an ecosystem.
Kyber gained control over the situation, and neutralized the threat after a couple of hours. The company offered a 15% of the total bounty to the hackers for returning the funds. The firm disabled the UI after recognizing the malicious code in the Google Tag Manager.
According to a company blog, only a couple of wallets were affected from the attack. They have compensated one of the accounts completely. They are currently exploring more options to intensify the security of the network.
Why Blockchain Attacks Happen?
Blockchain attacks are rising every year. First half of 2022 accounts for hacks comprising 2 Billion USD. CertiK, a blockchain security company, says that these attacks will increase by 3.23X on a year-on-year basis. The developers need to focus on making the ecosystems less vulnerable to these attacks.
51% attacks, creation errors, and scarce security in cryptocurrency exchanges remain some of the prime reasons for these hacks. 51% attacks are when the hacker(s) gains control over half of the blockchain. This allows them to prevent other miners from completing the blocks.
Bugs and errors create a window for the hackers to crawl through the blockchain systems to exploit the ecosystem. Same goes with the weak security systems, it allows them to cross any barriers just like the Harry Potter trio getting past the sleeping Fluffy to enter the locked door.
Source: https://www.thecoinrepublic.com/2022/09/07/kyber-network-gets-rid-off-the-attack-vector/