The CEO of Kyber Network Was Forced to Reduce Staff by 50% Following a $46,500,000 Exploit

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Last Updated on December 27, 2023 by Bitfinsider

According to its CEO and founder, Kyber Network, a decentralized finance (DeFi) platform, is halving its workforce in the wake of a significant exploit that occurred earlier this year.

Approximately $46.5 million worth of digital assets, including $20.78 million in Wrapped Ethereum (wETH), $9.53 million in Lido-wrapped staked Ethereum (wstETH), and $4.1 million in layer-2 scaling solution Arbitrum (ARB), were obtained through the November attack of KyberSwap.

Victor Tran, the CEO and founder of Kyber Network, claims on the social media platform X that the company is making significant personnel reductions in order to make up for the lost revenue as a result of the exploit.

He said: “However, due to the Elastic exploit, in a move to stand by affected users, we implemented the KyberSwap Elastic Exploit Treasury Grant Program to cover up to 100% of users’ losses. We have also made significant changes in our business operations to ensure we are well positioned to continue on a sustainable path forward, including temporarily pausing our liquidity protocol initiatives and KyberAI project. Regrettably, we have also reduced our workforce by 50%. The past few days have been among the most challenging in my journey as an entrepreneur. The decision to part ways with so many of our team members was heart-wrenching. Each individual is not only highly skilled, but also deeply committed to advancing DeFi and bringing tangible value to end-users. Their unwavering dedication during these tough times has shown great character and passion for the industry. Such talent and integrity are rare in our fast-paced, profit-driven industry.”

Since the exploit, Kyber Network Crystal (KNC), the native token for Kyber Swap, has primarily traded sideways; as of this writing, it is trading at $0.72.

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