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The decentralized exchange (DEX) KyberSwap joins the list of DeFi projects to experience a frontend exploit following the Curve Finance exploits from last month. The liquidity protocol on which KyberSwap is based, the Kyber Network, confirmed reports on Friday. It said the attack on its website was immediately discovered and resolved within a few hours. As per the company's announcement, the hackers were able to compromise the app's front end through the Google Tag Manager (GTM) script.
Google Tag Manager (GTM) Script
GTM scripts are frequently used by websites to track user activity and collect data for analytical purposes. The hackers forced users to approve their cash and transmitted them to the hacker's address by injecting a malicious script through GTM. However, before the update, the hacker shifted four transactions totaling $265,000 worth of Matic Aave interest-bearing USDC (MAUSDC) tokens. Aave is on the Polygon blockchain in addition to Ethereum and a few others. The above token is a USDC stablecoin deposited via Aave's Polygon integration. Users receive the interest-bearing version as a representation of their deposit each time a token similar to this is deposited on the lending platform. https://twitter.com/KyberNetwork/status/1565421312922697728
KyberSwap Request Users to Confirm Approvals
The hackers took use of this interest-bearing version in their exploit on Friday. Kyber Network advised all users to confirm their approvals using the block explorer's approval tool. In exchange for returning the assets taken, Kyber Network is offering the hackers a 15% bounty worth $40,000. The company requests that the remaining cash be sent to a wallet address it has provided. The cryptocurrency sector has experienced hacks before and will continue to do so. This year saw two of the biggest hacks in history, the first to an Ethereum-to-Solana bridge network in January and the second to Axie Infinity's Ronin crypto bridge in March.