KyberSwap Launches Compensation Program for Users Affected by Hack - Latest cryptocurrency news

KyberSwap Launches Compensation Program for Users Affected by Hack

Million-dollar scale attacks are happening every day in the cryptocurrency markets. The latest attack targeted KyberSwap, attempting to drain the protocol and gain full control over the management. Additionally, they announced that they will make payments and provide salary increases and compensation to employees. Finally, some good news has arrived for KyberSwap.

It was known that KyberSwap, a decentralized finance (DeFi) protocol that was hacked in November, suffered approximately $50 million in damages. Now, the team has announced that they will provide financial assistance to affected users. To this end, KyberSwap will launch a grant program funded by its own treasury to compensate those negatively affected by the incident.

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The stolen assets of the victims will be repaid according to a unity principle within the grant program. This step is taken to demonstrate KyberSwap’s commitment to its user community and platform security, as well as to do something necessary for a bright long-term future.

During the attack, KyberSwap managed to recover $4.7 million, which was earned from profitable transactions made by third-party MEV bots. In the recent announcement, the team wrote: “We know that our users, especially those affected by the damage during the protocol usage, have concerns despite accepting the risks of the protocol during this challenging period. Therefore, we will offer a grant program to our users.”

While other cryptocurrencies are aiming for new highs in the recent rally, the price of KNC Coin rose to $0.9. However, the price dropped due to the protocol being drained by the attacker. If the grant announcement is not further delayed, the price could gradually recover. In the short term, closing below the $0.7 support level could cause the price to drop to $0.653 and $0.627.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
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