Decentralized finance protocol Kyber Network has warned its users of potential vulnerabilities in its Elastic platform. The warning comes after the vulnerability was identified in the platform’s Elastic product earlier Monday.
The Kyber Network team has as a result asked any of its users with funds deposited in the Elastic platform to withdraw such funds immediately.
“We have identified a potential vulnerability and strongly advise all Liquidity Providers to withdraw your funds on Elastic as soon as possible. Investigations are ongoing, and no user funds are lost,” The Kyber Network team said today in a tweet.
The tweet further implied that the Elastic platform has been disabled for now, and no funds have been lost. “We will provide further details on the situation shortly and announce when KyberSwap Elastic is re-enabled. We apologise for the inconvenience caused,” it further stated.
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Elastic, which is a decentralized crypto exchange owned by Kyber Network is the only one that has been affected, while Kyberswap, a similar platform remains unaffected. As users comply and are withdrawing their funds, Elastic’s total value locked has dropped from $105 million to just $52 million.
Other Crypto Vulnerabilities
There have been several reported crypto vulnerabilities exploits recently that have created a lot of panic in the crypto space. On 15 April, lending protocol Hundred Finance reported an attack in which its Ethereum Layer 2 blockchain Optimism was breached. Over $7 million was lost as a result of the attack, which security firm Certik said was caused by a flash loan attack.
Terraport, another platform associated with Do Kwon’s infamous Terra company also suffered an attack barely 10 days after its launch. The platform was launched to help in the recovery of Terra Luna Classic following the de-pegging that saw the stablecoin crash to $0.87. The attack which affected its liquidity wallet led to the loss of $2 million in LUNC.
Several other vulnerabilities involving crypto ATMs, blockchain bridges and many other crypto platforms have become a thing of concern.
Regulators Wade in
The widespread issues with crypto vulnerabilities have not been a concern only to investors, but also to regulators, particularly in the U.S. Such incidences may be the reason the country has renewed efforts to strengthen surveillance of the crypto space to ensure they comply with regulatory requirements.
On their own part, crypto platforms such as exchanges should try to level up in security to ensure that these incidences do not repeat themselves. This is critical if the public will retain their trust in the space and if it will attract those outside of it.
If they don’t, they’ll be giving regulators valid reasons to crackdown on the industry and continue to give it a bad name, which will in the long run hinder any real adoption.