To the Klever Community,
Here is our latest progress report on the action plan and remediation steps following the recent exploit. Our focus remains on reinforcing network security, safely restoring services, and aligning our on-chain metrics.
1. New Release: v1.7.19-rc3 Deployed
As a direct result of our active monitoring efforts and the deployment of AI-assisted exploit detection, we released version v1.7.19-rc3 last night.
We want to take a moment to publicly recognize our community validators. You have already stepped up and are running this new version. Your agility, commitment, and engagement are what keep this network resilient.
Here is the context behind this specific security update:
Security update — royalty validation hardened
Through a proactive security audit, our team identified and fixed a critical issue in the asset royalty-handling logic. An integer-overflow edge case in how split-royalty percentages were validated could, in principle, let a crafted asset pay out more than it took in — effectively creating value from nothing.
We patched it with defense in depth: malicious configurations are now rejected at asset creation and blocked again at payout, behind a coordinated network upgrade. The fix was reviewed, unit-tested across every affected path, and validated end-to-end on a live test network — confirming the exploit is closed while legitimate royalties work exactly as before.
Protecting the integrity of the network and its supply is our top priority.
2. Bridge Operations
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ETH → KLV: The bridge remains active in this direction. We have been monitoring it closely, and so far, no anomalies have been detected.
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KLV → ETH: We will continue to evaluate the stability of the incoming bridge traffic. If conditions remain optimal, we will proceed with our plan to reactivate the outbound direction (KLV → ETH).
3. Service Restoration
Our immediate target for tomorrow is the restoration of bitcoin.me.
This is a critical dependency for our broader recovery plan. Getting bitcoin.me fully operational is the necessary first step to restoring the Market Makers across our partner CEXs. Once those market dynamics are re-established, we will finally be able to safely turn the KLV Swap back on inside the Klever Wallet and VoxSwap later this week.
4. Unregistered KLV Burn & Buyback Program
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Burn Proposal: We are making solid progress on developing the technical procedure to burn the “unregistered” KLV (the tokens artificially minted off-the-books) without breaking the network’s supply math. We will have news on this execution very soon. As promised, this will be handled via an on-chain proposal and will be entirely public and transparent.
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Buyback: Our team is meticulously studying the market mechanics to execute the Buyback Program in the most effective and responsible way possible.
We deeply appreciate your continued trust and the active role you are playing in securing the network alongside us. We will be back with more updates as soon as the next milestones are reached.
Best,
DK