KiloEx Recovers 93.75% of $8 Million Stolen in April Breach

KiloEx, a decentralized perpetual trading platform, successfully recovered $7.5 million following a security breach that occurred on April 14, 2025. The incident involved a smart contract vulnerability that allowed attackers to exploit a price manipulation flaw, resulting in the theft of over $8 million in assets. The platform's official X account announced the recovery on April 18, 2025, highlighting the collaborative efforts with judicial authorities, legal teams, and cybersecurity experts to resolve the issue.

The recovery process involved extensive negotiations with the attacker, who agreed to return the funds in exchange for a 10% white hat bounty. This agreement not only facilitated the return of the stolen assets but also underscored KiloEx's commitment to fostering mutual trust within the ethical security community. The platform has since fully reimbursed all affected users, ensuring that there are no victims from the breach.

KiloEx's collaboration with various security companies, including SlowMist and MistTrack, played a crucial role in identifying the perpetrator and negotiating the return of the funds. The company SlowMist confirmed their involvement, stating that the attacker's decision to return the funds led to a "happy ending." Other partners, such as Binance, Manta Network, and BNB Chain, also contributed to resolving the incident.

In the aftermath of the breach, KiloEx has taken steps to enhance its security measures to prevent future incidents. The platform has announced that it will not pursue further legal action against the attacker, focusing instead on improving its security protocols. A text-based AMA session was conducted on Discord on April 18, 2025, at 13:00 UTC, to discuss the timeline, recovery process, and future security roadmap.

This incident highlights the ongoing challenges in blockchain security, particularly within the decentralized finance (DeFi) sector. Vulnerabilities such as price oracle exploits remain a significant concern, underscoring the need for robust security measures to protect against such threats. KiloEx's proactive approach to addressing the breach and collaborating with the ethical hacking community demonstrates a commitment to building a more secure and trustworthy platform for its users.