Security firm Cyvers disclosed a $50 million anomalous transaction linked to the hacked KyberSwap platform. Accordingly, the hacker distributes the funds to the largest HXA token holders. Following Cyvers’ update, Gate.io and MEXC exchanges suspended withdrawals and deposits of altcoin tokens.
KyberSwap hacker bought HXA token and distributed it!
Leading Blockchain security firm Cyvers has reported a concerning development regarding the recently hacked KyberSwap platform, known for facilitating the exchange of crypto assets without intermediaries. Accordingly, Cyvers detected an “abnormal transaction” linked to bad actors exploiting the Kyber Network. The Cyvers team revealed that the address specifically associated with the Kyber Network exploiter received $50 million worth of HXA tokens from an Ethereum address using an unusual function. Additionally, Cyvers found that the hacker then distributed the altcoin funds to various external accounts (EOAs). Meanwhile, he emphasized that these EOAs are the largest holders of HXA tokens.
Alert: Our system detected an abnormal operation related to the KyberNetwork exploit. Address funded by KyberNetwork exploiter received $50 million worth of HXA from address 0x0..000dEaD ETH using transferfrom function!
https://twitter.com/CyversAlerts/status/1733069135049904619
Cyvers invited interested parties to contact
As you follow from Kriptokoin.com, KyberSwap was the victim of a dramatic hack in November, in which various altcoin tokens were stolen. Thus, it became one of the crypto platforms that suffered from high-profile security vulnerabilities and lost millions of dollars. Meanwhile, the security firm underlined that HXA, the local utility token of the Herencia Artifex NFT project, uses Thirdweb libraries in its smart contract application. Cyvers suspects that the KyberSwap exploit may be linked to a vulnerability in the Multicall functionality. The security firm requested that relevant parties contact us for further investigation on the matter.
Two major exchanges suspend altcoin deposits and withdrawals
Cyvers announced that Gate.io and MEXC exchanges have suspended HXA withdrawals and deposits. This action came after abnormal operation was detected. However, it is unclear whether the suspension of deposits and withdrawals is in response to security concerns arising from misappropriated funds. Cyvers also noted that the HXA coin website, which can normally be accessed at hxacoin.io, is not currently in use. In addition, he noted that this situation continued at the time of reporting.
This move may not be clearly linked to security concerns. However, it shows the cautious approach of exchanges towards altcoin tokens in the wake of the KyberSwap exploit. This precautionary measure reflects growing awareness in the crypto world. It also reveals the need for stringent security protocols.
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