KiloEx Exchange Suffers $7.5M Loss in Hacker Attack: What Happened
A hacker exploited a vulnerability in the decentralized exchange KiloEx and looted around $7.5 million. The team is now in talks with the attacker.
The crypto trading platform KiloEx faced a large-scale attack that caused serious financial damage. The attacker found a flaw in the price oracle system and used it to manipulate asset prices and profit from fake transactions.
Initial estimates put the losses at around $7.5 million.
Exploit Details
The attacker operated across several networks, including:
- Base
- BNB Chain
- Taiko
They used a wallet funded through the crypto mixer Tornado Cash. The KiloEx team quickly suspended the platform and brought in top cybersecurity experts to investigate the incident and take back control of the situation.
According to the research firm Cyvers, the attacker exploited flaws in the price oracle access system.
Using an imported program, they set an unrealistically low ETH price (for example, $100) and opened a position with high leverage. They then closed the position at an inflated price and earned $3.12 million in a single transaction.
The attacker targeted the platform across several networks and used flash loans to quickly access liquidity. This approach helped them make the most of the vulnerability. Notably, similar tactics have appeared in previous attacks on other DeFi projects, showing the clear need to improve current security systems.
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KiloEx Team’s Response and Security Measures
As soon as the exploit was discovered, the KiloEx team suspended the platform. In an official statement, they said they are analyzing the attack vector and working with cybersecurity partners, including Seal-911, SlowMist, Sherlock, and teams from BNB Chain and Manta Network.
Following the incident, the price of KiloEx’s native token, KILO (traded on Kucoin), dropped sharply. At the time of writing, the token had lost over 25% in the past 24 hours.
The attacker moved the stolen assets through zkBridge and Meson. Specialists are now working to block suspicious transactions and prevent any further losses.
Furthermore, the KiloEx team publicly addressed the hacker and offered to settle the matter if they return 90% of the stolen funds.
In addition, KiloEx leadership also announced a bounty program and is preparing a detailed report on the incident. The report will outline how the attack unfolded and what steps the team took in response. Founded in 2023 and backed by Binance Labs, the platform is under close investor scrutiny, which makes stronger security measures even more important as cross-chain operations continue to gain traction.
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Ultimately, this case may push teams to improve access control protocols and reduce the risk of similar attacks in the future.
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