Kyber Network Forced to Slash Staff by 50% After $46,500,000 Exploit, According to CEO

Decentralized finance (DeFi) platform Kyber Network is cutting its staff in half following a large exploit earlier this year, according to its CEO and founder.

In November, KyberSwap was exploited for $46.5 million worth of digital assets, including $20.78 million worth of Wrapped Ethereum (wETH), $9.53 million worth of Lido-wrapped staked Ethereum (wstETH), and $4.1 million worth of layer-2 scaling solution Arbitrum (ARB).

Kyber Network CEO and founder Victor Tran says on the social media platform X that due to the exploit, the firm is taking measures to make up for the lost funds, including large staff cuts.

“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.”

Kyber Network Crystal (KNC), the native token for Kyber Swap, has mostly traded sideways since the exploit, currently trading at $0.72 at time of writing.

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