Decentralized Exchange KiloEX Targeted By $7.5M Attack, Suspends Platform To Pursue Hackers
The decentralized exchange KiloEX has ceased operations following a $7.5 million breach. This incident has triggered an immediate investigation and strategic alliance with protection firms and blockchain collaborators.
The incident, acknowledged by the KiloEX team on 14 April 2025, necessitated the suspension of platform activity as efforts are made to trace and possibly recover the hacked assets.
In a public news on X, KiloEX indicated that they had contained the vulnerability breach and were currently investigating the attack vector. “The team has promptly paused platform activities and is collaborating with security partners to monitor the flow of funds,” they stated.
EXPLORE: Top New Cryptocurrencies for Investment in 2025
KiloEX Collaborates with BNB Chain and Cybersecurity Entities to Probe $7.5M Vulnerability breach
The trading protocol has engaged with BNB Chain, Manta Network, and cybersecurity firms Seal-911, SlowMist, and Sherlock, which is expected to facilitate the investigation. “We are partnering with ecosystem allies to trace and recover funds wherever feasible,” the team mentioned.
According to KiloEX, the stolen funds are allegedly being channeled through zkBridge and Meson. Additionally, the exchange is urgently communicating with both protocols to halt the transactions and mitigate further losses.
A comprehensive post-mortem report is underway, alongside a proposed bounty program designed to incentivize the recovery of funds or the identification of the perpetrator.
PeckShield, a cybersecurity firm assisting with the inquiry, attributed the breach to a probable “price oracle flaw.”
In a post on X, the firm elaborated on how a malicious individual manipulated the ETH/USD rate in a self-executing contract, leading to the opening and closing of a position at artificially enhanced rates, culminating in a $3.12 million profit from a single transaction.
Assets affected include $3.3 million on Base, $3.1 million on opBNB, and $1 million on Binance Smart Chain (BSC).
The @KiloEx_perp platform was compromised today with an estimated rekt of ~7.5m ($3.3m on base, $3.1m on opBNB, $1m on BSC).
The protocol is currently paused! Our initial analysis of one vulnerability breach transaction suggests a price oracle problem. The hacker exploited this to establish a new position with initially provided…
— PeckShield Inc. (@peckshield) April 14, 2025
Chaofan Shou, co-founder of Fuzzland and a distributed database analytics expert, also highlighted weaknesses in KiloEX’s price oracle system. He remarked that although the network limited access to trusted forwarders, it neglected to authenticate the forwarded caller, labeling it a “very basic vulnerability.”
EXPLORE: 10 Most Promising AI Crypto Coins for Investment in 2025
KiloEX Coin Plummets 27% Following $7.5M Hack
The incident has adversely affected KiloEX’s native token, KILO, which dropped over 27% after the update of the incident emerged. The coin is now priced at $0.03596, marking a significant decline from its peak of $0.1648 achieved in late March, as reported by CoinGecko.
Established in 2023, KiloEX is supported by Binance Labs and recently formed a collaboration with DWF Labs, a venture capital firm in Dubai focused on Web3. The exploit occurred just a day after the update of the collaboration, raising concerns over KiloEX’s short-term plans and user trust.
In the first quarter of 2025, over $1.63 billion in digital currency was lost to theft, with a striking 92% of that attributed to the extensive Bybit exploit earlier in February.
While January saw losses of $87 million, February experienced an unprecedented spike to $1.53 billion, which included additional breaches involving Infini, zkLend, and Ionic.
DISCOVER: Top Meme Coin ICOs for Investment in April 2025
Join the 99Bitcoins Update Discord for Latest Trading market Updates
Key Takeaways
- KiloEX has suspended operations following a $7.5 million breach, with stolen monies traced across various chains.
- If ratified, WHPA would mark the first U.S. law enforcement body to incorporate BTC into its financial assets.
- Wyoming’s inclusive Bitcoin-friendly policy includes a proposed bill for a state Bitcoin reserve allocating up to 3% of state funds.
The post Decentralized Trading network KiloEX Hit By $7.5M Exploit, Shuts Down Protocol To Track Hackers appeared first on 99Bitcoins.
