KITE Foundation Pauses Transfers After Token Compromise

The KITE Foundation identified abnormal transfers of KITE tokens on the Ethereum mainnet, confirming that certain wallet addresses had been compromised by hackers. In response, the foundation urgently paused all ERC-20 transfers and related cross-chain channels to prevent any potential asset losses. Fortunately, there were no losses reported for users or the project itself.

To address the situation, the KITE Foundation deployed a new contract and executed an airdrop of new tokens at a 1:1 ratio to legitimate addresses. This airdrop was based on a snapshot taken at block 25,692,498, ensuring that addresses controlled by the attackers were excluded from receiving the new tokens. This action was taken to restore confidence among users and secure the integrity of the KITE token ecosystem.