KiloEx Recovers 73% of $7.5 Million Stolen in Oracle Hack

KiloEx, a decentralized exchange, recently faced a significant security breach on April 15th, resulting in the theft of approximately $7.5 million worth of cryptocurrency assets. The incident was facilitated through a vulnerability in the platform's price oracle system, allowing an attacker to manipulate price information and siphon funds across multiple networks, including Base, opBNB, and BNB Smart Chain. The stolen assets were distributed across these networks, with about $3.3 million taken from Base, $3.1 million from opBNB, and $1 million from BNB Smart Chain.

In response to the breach, KiloEx took immediate action to contain the damage. The platform suspended its operations to isolate the attack and prevent further losses. KiloEx confirmed that the attack had been contained and that no additional risks were posed to users. The platform also reached out to the hacker with a public appeal, offering a $750,000 bounty for the return of 90% of the stolen funds. This offer, known as a "white hat bounty," is a common practice in the decentralized finance (DeFi) community, where platforms incentivize hackers to return stolen assets in exchange for a reward and immunity from legal action.

KiloEx shared the wallet addresses used by the attacker and collaborated with blockchain networks to freeze any movement of the stolen funds. Despite these efforts, the funds were being moved through cross-chain platforms, complicating the tracking process. The platform plans to release a comprehensive report on the incident and initiate a bounty program to recover the remaining assets.

Following the recovery of all stolen assets, KiloEx announced that it has successfully retrieved all the funds related to the security incident. The attacker's address returned approximately $5.5 million worth of cryptocurrency assets, and a 10% reward will be paid to the white hat who assisted according to a pre-agreed arrangement. The case is currently being progressed towards closure in cooperation with judicial authorities and third-party experts.

The successful recovery of the stolen assets highlights KiloEx's proactive approach to security and its collaboration with various stakeholders in the blockchain community. The platform's swift response to the incident, including the suspension of operations and the offer of a white hat bounty, demonstrates its dedication to protecting user funds and maintaining the integrity of its platform. As KiloEx continues to work on addressing the vulnerabilities that led to the breach, it remains focused on rebuilding trust and ensuring the safety of its users.