• Following its hack a month ago in which it lost over $50 million, Kyber Network has been forced to “regrettably” slash its workforce by 50%, a decision the CEO calls “heart-wrenching.”
• While it has also had to pause some of its other projects like KyberAi and liquidity protocol projects, Kyber Network says that its core functions, like the aggregator, remain intact.

A month ago, the decentralized exchange Kyber Network became the latest victim of a cyber attack, with the hackers orchestrating “one of the most sophisticated in the history of DeFi” and taking off with over $50 million in ETH, USDC and other altcoins. The hack’s effects are still unravelling, and in the latest manifestation, Kyber has had to lay off half of its workforce and suspend some of its innovative new products and projects.

The initial $48 million attack occurred on November 22, followed by a $6.6 million attack on front-run bots, taking the total tally close to $55 million. Following the heist, Kyber has been forced to lay off 50% of its employees as it seeks to bounce back from the tragedy.

Announcing the layoffs on Twitter (X), CEO Victor Tran described it as one of the most difficult decisions in his career but said it’s necessary if the project is to survive.

He stated:

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.

The company has created a voluntary database to support the laid-off employees and help them transition to new opportunities. Tran called on other Web3 founders to consider the departing employees for opportunities in their companies, describing them as capable and possessing “a level of commitment and integrity that is invaluable.”

Some industry leaders have pledged to help the employees transition and offered them positions at their firms, including offers from Gravity Finance and OKX.

While the layoffs at Kyber were directly related to the hack and not the overall market conditions, they are the latest in what has been the tech industry’s worst year in terms of layoffs. According to one report, the tech sector cut off 240,000 employees this year.

Kyber Network Maps Out Recovery Journey

Despite all the challenges that have emanated from the hack, Tran says the project’s core business is still intact. This includes the DEX aggregator and its Limit Order functions. Additionally, it plans on launching new projects to reinvigorate growth.

The CEO stated:

Moreover, we will soon be launching our Zap API, an innovative development that will enable dApps, wallets, and other projects to become the most convenient gateways for their users to access DeFi liquidity protocols.

“This development underscores our commitment to not only sustaining our platform but also to continuing to contribute to the wider DeFi ecosystem,” Tran added.

Kyber is also looking to reimburse the users who lost their funds through its Treasury Grants Program. However, this will only cover up to 60% of the lost funds.