KiloEx Suffers $7.5M Loss in Price Oracle Attack

On April 15, 2025, KiloEx, a decentralized exchange (DEX) for perpetual contracts, was targeted in a significant attack. The incident resulted in a loss of approximately $7.5 million, with the breakdown of losses being $3.3 million on the Base network, $3.1 million on the opBNB network, and $1 million on the BNB Chain. The attack was detected by PeckShield, a blockchain security firm, which provided an initial analysis of the incident.

KiloEx has since taken emergency measures to pause its operations. PeckShield's preliminary investigation revealed that the attack exploited a vulnerability in the price oracle mechanism. The attacker manipulated the ETHUSD price by setting it to 100 at the opening and then closing it at an inflated price of 10,000. This manipulation allowed the attacker to profit approximately $3.12 million from a single transaction.

Price oracle vulnerabilities are a known risk in decentralized finance (DeFi) platforms. These oracles provide external data to smart contracts, and if they are compromised or manipulated, it can lead to significant financial losses. In this case, the attacker took advantage of the price oracle's vulnerability to execute a profitable trade, highlighting the importance of robust security measures in DeFi platforms.

The incident serves as a reminder of the ongoing challenges in securing DeFi platforms. While these platforms offer innovative financial services, they are also susceptible to attacks due to their reliance on smart contracts and external data sources. As the DeFi ecosystem continues to grow, it is crucial for platforms to prioritize security and implement measures to protect against such vulnerabilities.

KiloEx's response to the attack, including the emergency pause of operations, demonstrates the platform's commitment to addressing the issue promptly. However, the incident underscores the need for continuous vigilance and improvement in security protocols to safeguard user funds and maintain trust in the DeFi ecosystem.