Decentralized exchange KiloEX made headlines recently after hackers managed to drain $7.5 million from its platform, leading to the suspension of its operations. This incident once again sheds light on the security vulnerabilities within the decentralized finance sector.
The exploit was detected on April 14, prompting KiloEX to immediately halt its operations and contain the breach. The exchange team is currently working with leading blockchain security companies to investigate the incident and trace the flow of funds. In an effort to recover the stolen assets, KiloEX plans to launch a bounty program that will reward individuals who provide assistance in this regard.
Blockchain security firm PeckShield conducted a detailed analysis of the exploit, revealing that attackers were able to siphon approximately $3.3 million on BASE, $3.1 million on opBNB, and an additional $1 million on BSC. The exploit exploited a flaw in the price oracle, allowing the hacker to manipulate ETH/USD prices significantly. By opening a new position with ETH priced at $100 and closing it with an inflated value of $10,000, the attacker secured a profit of $3.12 million in a single transaction.
In response to the security breach, KiloEX has collaborated with various blockchain networks and security experts, including BNB Chain, Manta Network, Seal-911, SlowMist, and Sherlock. Together, they are working to trace and recover the stolen funds to minimize the impact on users. However, investor confidence has taken a hit following the incident, with KiloEX’s native token, Kilo, experiencing a sharp decline in value.
This hack comes on the heels of a similar breach at Bybit, where attackers managed to steal $1.5 billion in user funds. These incidents highlight the ongoing challenges and vulnerabilities faced by decentralized finance platforms in ensuring the security of user assets.
As the investigation into the KiloEX exploit continues, the exchange remains suspended, and users are advised to exercise caution when engaging with decentralized finance platforms. Stay tuned for further updates on this developing story.