Decentralized exchange (DEX) KiloEx has pledged to fully compensate users impacted by a recent $7.5 million exploit, temporarily forcing the platform offline earlier this April.
In a recent statement, KiloEx said it would reimburse traders whose positions were affected by the suspension, promising to cover the gap in profits or losses incurred due to the halt in trading. The platform advised all traders to close their open positions once operations resume, stressing that compensation calculations will be based on the platform’s relaunch time.
“Please close your position as soon as possible after the platform resumes. Compensation will be calculated based on the platform’s resume time,”
the exchange said.
For users who staked in KiloEx’s Hybrid Vault, the platform confirmed that the stolen funds had been fully reinjected, ensuring staker earnings and principal remain intact. KiloEx will offer a 10% annual percentage yield (APY) bonus to stakers who had funds in the vault before the platform resumed service.
The exploit that occurred on April 14 stemmed from a vulnerability in a permissionless function, according to a post-mortem report. The attacker manipulated the platform’s price oracle, opening positions at falsely deflated prices and exiting at inflated rates, thereby generating illegitimate profits.
PeckShield’s report estimated total losses to be around $7.5 million, with $3.3 million on Base, $3.1 million on opBNB, and $1 million on Binance Smart Chain (BSC). Some stolen funds were in USD Coin (USDC), potentially subject to blacklisting.
In response, KiloEx extended a white hat bounty offer to the hacker on April 15, proposing a 10% reward, worth approximately $750,000, if the remaining 90% of the funds were returned. The DEX also warned that legal action would follow if the hacker failed to comply.
Blockchain security firms detected returning transactions linked to the KiloEx hack just days later. On April 18, the platform confirmed it had received the funds and would drop all legal proceedings, awarding the white hat bounty as promised.
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