Decentralized exchange platform KiloEx has announced a major milestone in its journey after successfully recovering the entire $7.5 million that was stolen in a recent exploit. In a statement released on April 18th, the platform expressed its relief and satisfaction with the recovery, stating, “We are pleased to announce that we have successfully recovered all stolen funds related to the recent security incident.”
The exploit was initially flagged by Cyvers, a reputable blockchain security firm, on April 14th. According to their investigation, the breach was linked to a vulnerability in KiloEx’s price oracle, which allowed the attacker to manipulate prices on various chains, including BNB, Base, and Taiko. Interestingly, the wallet used for the exploit had been funded through Tornado Cash, a popular crypto-mixing service known for its association with laundering illicit funds.
KiloEx had previously offered the attacker a 10% reward if they chose to return the stolen funds. With the successful recovery, the platform has upheld its promise and will be awarding 10% of the recovered amount as a bounty to the white hat hacker involved. This gesture not only recognizes the hacker’s contribution to enhancing the platform’s security but also demonstrates KiloEx’s commitment to fostering stronger ties with the ethical hacking community.
In a surprising turn of events, KiloEx has decided not to pursue legal action against the perpetrator. Instead, the company has chosen to focus on building trust and collaboration within the security community. They stated, “We prioritize long-term collaboration with the ethical security community and view this resolution as a cornerstone for mutual trust… No further legal action will be pursued—this matter is considered resolved in good faith.”
The attacker’s decision to return the stolen funds and claim the bounty has been hailed as a rare occurrence in an industry plagued by hacks and exploits. Yu Xian, the founder of Slowmist, acknowledged the significance of this action, noting that while it may not be an easy process due to the negotiation involved, it can ultimately be the best solution for all parties involved.
As KiloEx celebrates the successful recovery of the stolen funds, the incident serves as a reminder of the importance of security in the crypto space and the potential for collaboration between platforms and ethical hackers to improve overall resilience against threats.