Decentralized exchange KiloEX has halted operations after falling victim to a $7.5 million exploit. This has prompted an urgent investigation and collaboration with security firms and blockchain partners.
The breach, confirmed by the KiloEX team on 14 April 2025, forced the exchange to suspend platform usage as it works to trace and potentially recover the stolen assets.
In a public statement on X, KiloEX stated that the exploit had been contained and that they were now analyzing the attack vector. “The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” they wrote.
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KiloEX Teams Up with BNB Chain and Cybersecurity Firms to Investigate $7.5M Hack
The exchange has partnered with BNB Chain, Manta Network, and cybersecurity firms Seal-911, SlowMist, and Sherlock. This will apparently aid in the investigation. “We are collaborating with ecosystem partners to trace and recover funds where possible,” the team said.
The stolen assets are reportedly being funneled through zkBridge and Meson, according to KiloEX. Furthermore, the exchange is now in urgent contact with both protocols to freeze the transactions and minimize further damage.
A full post-mortem report is in progress, along with plans for a bounty program aimed at incentivizing the return of funds or identification of the hacker.
Cybersecurity firm PeckShield, which is assisting with the investigation, attributed the exploit to a likely “price oracle issue.”
In a post on X, the firm detailed how a malicious actor manipulated the ETH/USD price in a smart contract, opening and closing a position at artificially inflated rates, resulting in a $3.12 million profit from a single transaction.
Assets compromised include $3.3 million on Base, $3.1 million on opBNB, and $1 million on Binance Smart Chain (BSC).
The @KiloEx_perp protocol was hacked today with a loss of ~7.5m ($3.3m in base, $3.1m in opBNB, $1m in BSC).
The protocol is now paused! Our initial analysis on one exploit tx indicates a price oracle issue. And the hacker exploits it to create a new position with initial given…
— PeckShield Inc. (@peckshield) April 14, 2025
Blockchain analytics expert Chaofan Shou, co-founder of Fuzzland, also pointed to flaws in KiloEX’s price oracle mechanism. He noted that while the platform did restrict access to trusted forwarders, it failed to verify the forwarded caller, calling it a “very simple vulnerability.”
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KiloEX Token Drops 27% After $7.5M Exploit
The incident has taken a toll on KiloEX’s native token, KILO. It plummeted over 27% following news of the breach. The token is now trading at $0.03596, a sharp decline from its all-time high of $0.1648 reached in late March, according to CoinGecko.
Launched in 2023, KiloEX is backed by Binance Labs and recently partnered with DWF Labs, a Dubai-based Web3 venture capital firm. The hack comes just one day after the partnership announcement, casting uncertainty over KiloEX’s short-term roadmap and user confidence.
Over $1.63 billion in cryptocurrency was stolen during the first quarter of 2025, with a staggering 92% of the total attributed to the massive Bybit hack in February.
While January recorded $87 million in losses, February saw an unprecedented surge to $1.53 billion, including additional attacks on Infini, zkLend, and Ionic.
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Key Takeaways
- KiloEX halted operations after a $7.5 million exploit, with stolen funds traced across multiple chains.
- If approved, WHPA would be the first U.S. law enforcement association to add Bitcoin to its balance sheet.
- Wyoming’s broader Bitcoin-friendly stance includes a proposed state Bitcoin reserve bill allocating up to 3% of state funds.
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