Last updated:
Crypto Reporter
Shalini Nagarajan
Crypto Reporter
Shalini Nagarajan
Share
Why Trust Cryptonews
Decentralized exchange KiloEX suspended its platform Tuesday after hackers drained $7.5m, marking the latest security breach in the area of decentralized finance.
In an announcement on April 14 via X, KiloEX confirmed it had halted operations immediately after detecting the exploit. The team said it contained the breach and launched an investigation alongside leading blockchain security companies.
“The exploit has been contained. The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” the statement read. The exchange added it would soon launch a bounty program, offering rewards for assistance in recovering stolen assets.
PeckShield Reveals Price Manipulation Behind $7.5m KiloEX Attack
Blockchain security firm PeckShield provided a breakdown of the exploit, detailing how attackers siphoned approximately $3.3m on BASE, $3.1m on opBNB, and an additional $1m on BSC.
According to PeckShield’s analysis, a flaw in the price oracle allowed the hacker to manipulate ETH/USD prices dramatically. The attacker opened a new position with ETH priced at 100 dollars, then immediately closed it with an artificially inflated value of 10,000 dollars, securing a $3.12m profit in one transaction alone.
Collaborative Efforts Underway to Minimize Damage from Exploit
KiloEX said it has enlisted the support of blockchain networks and security experts. These include BNB Chain, Manta Network, Seal-911, SlowMist and Sherlock. Together, they are tracing and recovering stolen funds to minimize impact on users.
In the aftermath of this incident, investor confidence sharply declined. The price of KiloEX’s native token, Kilo, fell more than 31% to $0.0353, according to data from CoinGecko. The token has lost over 78 per cent of its value since reaching its record high of $0.1648 on March 27.
This hack comes shortly after last month’s breach at prominent crypto exchange Bybit, which saw attackers steal $1.5b in user funds, showing the vulnerabilities within decentralized finance platforms.