KyberNetwork fires 50% of employees after $47 million hack

The team has also pledged to refund 100% of the funds to affected users

25.12.2023 - 12:32

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3 min

What’s new? KyberNetwork co-founder Victor Tran has presented a $47 million recovery plan for the project after the hack of the decentralized crypto exchange (DEX) KyberSwap. The entrepreneur announced the launch of the KyberSwap Treasury Grant Program, which will use Treasury funds to cover 100% of user losses, as well as the layoff of 50% of employees to reduce costs.

Source: Twitter.com

What else is known? Tran assured that after the hack, core features such as the aggregator and limit order are working normally. The team is still focused on launching the Zap API to work with DeFi protocols. Along with this, the development of the KyberAI project has been put on hold as part of business optimization. According to Tran, this decision will ensure a more sustainable development of the project.

He emphasized that all the dismissed employees are highly qualified professionals and that the decision to downsize was “heart-wrenching.” Their contact information has been compiled into a database that can be used by other Web 3.0 teams to find specialists.

On November 23, KyberSwap lost assets in Arbitrum, Optimism, Kyber Mainnet, Polygon, and Base in a reentrancy attack. At the same time, the hacker reported a willingness to negotiate.

The hacker was offered a 90% refund in exchange for a guarantee not to contact law enforcement. But he accused the project’s team and community of being “unfriendly” and later demanded full control of the protocol and the development company, including business documentation.

OKX pledges to compensate for the damage caused by the hack of the decentralized exchange

Experts estimate losses at $2,7 million

According to the program’s plan, the distribution of funds to affected users of the exchange will begin on February 1 next year. Until then, customers must choose to receive their payouts and undergo the identification procedure (KYC).

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