Mr. Phan Duc Trung, Deputy Permanent Chairman of the Vietnam Blockchain Association (VBA), assesses that the attack on the decentralized protocol Kyber Elastic was meticulously prepared well in advance by a highly skilled technological team. He mentions that Kyber Network is actively working to recover the lost funds.
According to Mr. Phan Duc Trung, the technology experts and the ChainTracer tracking project of the VBA have collaborated with leading global blockchain security and data analysis units such as Certik and Chainalysis to analyze the Kyber Elastic attack that occurred on November 23, immediately after its public disclosure.
Mr. Phan Duc Trung states that the technology experts and VBA partners independently analyzed the Kyber Elastic attack immediately after the information was disclosed.
Mr. Phan Duc Trung stated that the team of experts and partners at VBA conducted an independent analysis of the Kyber Elastic attack immediately after the information was disclosed.
“Based on publicly collected information, special reports received by VBA from reputable partners such as Certik, Chainalysis, and opinions from experienced experts in various fields such as security, finance, technology, etc., we evaluate this as a sophisticated attack that has been meticulously prepared well in advance by a highly skilled technological team,” Mr. Trung states.
According to Mr. Tran Dinh, representative of the ChainTracer on-chain tracking project, VBA has actively contacted the Kyber Elastic development team, a member of the Kyber Network ecosystem, to gather multidimensional information and provide support for Kyber Elastic in resolving the incident, including tracking attackers and offering appropriate advice.
Mr. Tran Dinh, representing ChainTracer, mentions that VBA is always ready to support projects in need of tracking assistance and provide advice on overcoming incidents, as in the case of Kyber Elastic.
Mr. Tran Dinh, the representative of the ChainTracer tracking project, mentioned that VBA is always ready to support projects in need of tracking assistance and provide advice on overcoming incidents, as in the case of Kyber Elastic.
Mr. Tran Huy Vu, CEO and Co-founder of Kyber Network, emphasizes that enhancing security and transparency is a top priority for the project’s development team. According to Mr. Vu, the system has undergone multiple security audits with reputable units such as Chain Security and has organized system vulnerability search programs with substantial rewards for those who discover and report issues, totaling up to millions of USD.
Mr. Vu states that negotiations with the attackers are ongoing, and the commitment is to mobilize all resources to recover the stolen funds and return them to system users to the maximum extent possible. He emphasizes that this process may take several months, even equivalent to a year, but assures that it remains a top priority for the Kyber team until the matter is fully resolved.
Mr. Tran Huy Vu, CEO of Kyber Network, shared that security has been a top priority for the project since its development.
Sharing insights into the serious incident involving Kyber Elastic, Mr. Nguyen Duy Lan, a cybersecurity expert at VBA and Co-founder of Veramine Security Company (USA), notes that “This attack shows that even when a project is audited, there still needs to be stricter management policies for critical or financially significant code areas.”
In agreement, Mr. Nguyen Thanh Son, Vice President of ABN Europe Company, a technology expert at VBA, suggests that the Kyber Elastic incident should serve as a warning to similar projects in the decentralized finance (DeFi) world. He emphasizes the need for thorough consideration of security issues and insurance plans to protect the assets of investors, providing liquidity, and facilitating transactions on web3 platforms. He warns against viewing DeFi solely as a technological realm, stressing its responsibility as a financial system.
Regarding the Kyber Network development team, when asked, Mr. Phan Duc Trung speaks highly of the diligence and seriousness of the Kyber Network leadership throughout the project’s implementation since 2017. He also states that there is no indication that the incident originated internally within Kyber Network, dispelling negative rumors.
The Kyber Elastic attack occurred on November 23, resulting in the theft of cryptocurrency assets (Ethereum, Arbitrum, Optimism, Polygon, and Base) valued at over USD 47 million (approximately VND 1,140 billion), all sent to a single wallet address. Currently, the alleged attacker has not engaged in direct negotiations, complicating the recovery process with numerous anonymous emails sent to the Kyber Network development team.