- Smart contract vulnerability exploited to steal $7.5M, KiloEx recovers.
- Hacker accepts 10% white hat bounty, returning funds.
KiloEx, a decentralized perpetual trading platform, recovers $7.5 million in losses after a recent security breach. The announcement was made on April 18, 2025, according to the platform’s official X account. The initial concern from the crypto community was that the breach exploited a price manipulation vulnerability in KiloEx’s smart contracts.
This recovery required a lot of collaboration with judicial authorities, legal teams, and cybersecurity experts. KiloEx confirmed that it has fully reimbursed all affected users and stated that there are no victims. The platform also announced that it will officially close the legal process of the case and share updates on X.
Bounty Agreement and White Hat Collaboration
Kiloex mentioned that a white hat hacker who assisted in resolving the issue was rewarded with 10% of the recovered funds. The hacker was paid to improve the platform’s security. The company called the resolution a step to forge mutual trust and promised to keep working with the ethical security community to build long-term collaboration.
Source – X
The incident began on April 14, 2025, PeckShield says, when the exploit enabled thieves to steal more than $8 million in assets. Kiloex collaborated with various security companies, such as SlowMist and MistTrack, to identify the perpetrator behind the attack. After 3.5 days of negotiations, the attacker returned the funds, and a 10% bounty was agreed in the deal.
The company SlowMist confirmed that they were involved in the recovery and that they assisted in the tracing and negotiations. The firm shared on X that the attacker’s decision to return the funds led to a “happy ending.” Other partners who helped us resolve the incident were Binance, Manta Network, and BNB Chain.
Legal Actions and Security Enhancements
KiloEx furthermore said it was resolved in good faith, and it will take no further legal action in the matter. However, the platform is now trying to improve its security measures to prevent further breaches. A text-based AMA session to date the timeline, recovery process, and future security roadmap will be conducted on Discord on April 18, 2025, at 13:00 UTC.
Source – Coinmarketcap
After the news, KiloEx’s native token KILO fell 27% to $0.03596. However, the token is 78% down from its all time high of $0.1648 recorded on March 27, 2025. The project is still in its infancy, as it is from 2023, and is backed by Binance Labs, it has been trying to expand its market footprint through partnerships, like the one it did with DWF Labs.
Blockhain security is still a major issue when it comes to DeFi, and vulnerabilities like price oracle exploits are still a big concern. According to Chainalysis, North Korean inclined groups stole over $1 billion from DeFi platforms in a 2024 report; a good reason for stronger security.
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