KiloEx Recovers All $7.4M After Hacker Returns Funds

KiloEx, a decentralized exchange, recently experienced a significant security breach that resulted in the loss of approximately $7.4 million. The incident triggered a rapid and coordinated response from the exchange, which involved a wide array of cybersecurity experts and blockchain partners. Key players in the recovery effort included SlowMist, blocksec, SEAL 911, Manta Network, and BNB Chain. This collaborative approach was essential in addressing the breach and safeguarding user funds.

The hacker responsible for the exploit initially returned $1.4 million worth of USDT, which was a positive development in resolving the incident. Following this, additional efforts were made to recover the remaining stolen funds. KiloEx's proactive measures included offering a 10% bounty to the attacker in exchange for the return of the stolen assets. This strategy proved effective in encouraging the hacker to return the funds. The exchange's ethical hacking approach, which rewards white hat efforts, played a crucial role in the recovery process.

KiloEx's collaboration with blockchain networks and security firms such as BNB Chain, Manta Network, SlowMist, PeckShield, and Seal-911 was pivotal in investigating the breach and implementing a post-incident security strategy. The exchange expressed gratitude to these platforms for their support and assistance in the recovery process. The collaboration ensured that the stolen funds were fully recovered, and the case was closed in cooperation with legal and cybersecurity partners.

The incident underscored the importance of robust security measures in the decentralized finance (DeFi) ecosystem. KiloEx's response demonstrated the effectiveness of a coordinated effort involving multiple stakeholders, including cybersecurity experts, blockchain partners, and legal authorities. The exchange's commitment to user safety and the recovery of stolen funds highlighted its dedication to maintaining trust and integrity within the DeFi community.