KiloEx Announces Compensation Plans After $7M Hack, KILO Drops 5%

KiloEx, a decentralized exchange (DEX), has announced comprehensive compensation plans for users affected by a recent $7 million hacking incident. The platform, backed by YZi Labs, has been working diligently to recover from the security breach and restore user trust. The hack, which occurred on April 14, 2025, led to the suspension of the platform as KiloEx collaborated with security partners to investigate the breach and trace the stolen funds.

In a post on X (Twitter), KiloEx detailed its resolution plans for traders, Hybrid Vault stakers, and VIP users. Traders whose positions remained open during the platform suspension will be allowed to continue trading once operations resume. However, those whose losses increased or profits decreased during this period will be fully compensated for the difference. The DEX advised traders to close their positions as soon as possible after the platform resumes to avoid discrepancies between their actual profit and loss (PnL) and the compensation amount.

For Hybrid Vault Stakers, their principal and earnings during the suspension period remain unaffected. KiloEx has successfully recovered and reinjected all stolen funds into the Hybrid Vault. To incentivize these users, the platform plans to launch a Special Yield Boost Campaign upon resuming operations, offering an additional 10% APY on top of the base platform yield, paid out in USDT.

VIP users affected by the hack will receive a one-level upgrade, excluding those classified as VIP7. All affected users, including VIP7, will receive a 30-day VIP status protection period. The VIP status was determined based on a real-time snapshot taken at the time of the security incident.

KiloEx's efforts to recover from the hack have been supported by SlowMist, a blockchain security firm. SlowMist played a critical role in the recovery process by helping KiloEx communicate with the attacker via on-chain messages, leading to the recovery of $8.44 million in stolen funds. The security firm emphasized the importance of on-chain messaging in facilitating critical communications during security incidents.

Despite these positive developments, KiloEx’s native token, KILO, experienced a notable decline of over 5%. This decline reflects ongoing market volatility and the challenges the platform faces as it prepares to resume operations. The future trajectory of KILO and the overall stability of the KiloEx platform will depend on how the market responds to these developments and the platform's ability to maintain user trust and security.

KiloEx's proactive approach to compensating hacking victims and its commitment to security and user trust are commendable. As the platform resumes operations, it will be crucial for KiloEx to navigate the current market conditions and ensure the stability of its token and overall platform. The success of these efforts will be a testament to the platform's resilience and its ability to bounce back from this significant security incident.