KiloEx Suffers $7 Million Hack, Crypto Market on Edge

On April 14, 2025, the crypto world was shaken by a significant security breach involving KiloEx, a prominent player in the decentralized derivatives market. Blockchain analysis firm Cyver first detected a series of suspicious transactions linked to the KiloEx_perp protocol across multiple chains, triggering a full-blown security crisis. The attacker, using an address funded via TornadoCash, managed to drain funds from the BNB, Base, and Taiko chains, accumulating around $7 million through a series of coordinated exploitative transactions. By April 15, KiloEx officially confirmed the breach, acknowledging that their vault had been compromised.

In an official post on X, KiloEx addressed its community, expressing regret over the incident and publicly sharing the attacker’s wallet address. This move was intended to help other protocols identify and potentially block the rogue account. The wallet address, 0x00fac92881556a90fdb19eae9f23640b95b4bcbd, is now on multiple watchlists as KiloEx urged all partner platforms to act swiftly and remove access to prevent any additional damage. The stolen funds were routed through zkbBridge and Meson, two protocols now working closely with the team to restrict the attacker’s movements and minimize the loss.

KiloEx is a significant player in the crypto market, with a total trading volume of $38 billion, $106 million in intraday volume, and $6 million in open interest. The halt in services due to the breach is not just a setback but a major disruption to the decentralized derivatives market. In response to the crisis, KiloEx has launched a bounty program aimed at recovering the stolen funds, focusing on damage control, user reassurance, and recovering assets before the trail runs cold.

KiloEx’s breach is part of a broader trend of security issues in the crypto industry. With over $2 billion lost in hacks so far in 2025, the trend is alarming. Q1 alone saw $1.78 billion vanish from the market, with high-profile names like Bybit, Ads Power, Phemex, and Moby also suffering major blows. The Bybit hack, which wiped out $1.5 billion, is still fresh in the industry’s memory, highlighting the urgent need for better security measures. Experts are now calling for stricter regulations and enforcement units, especially around decentralized platforms, as the gap between innovation and security becomes more apparent with each new attack.

Despite the turmoil, the broader crypto market appears relatively stable, with a total market capitalization of $2.07 trillion and a modest 0.83% daily gain. Bitcoin remains just under the $90K mark at $85,457, up 1.08% intraday and nearly 7.5% for the week. However, the crypto fear and greed index rests at a cautious 31, indicating fading sentiment as users begin to question the reliability of platforms that were once trusted giants. Top gainers on the day include Fartcoin, Story, Kaspa, Vechain, Toncoin, and Raydium, showing that opportunities remain, but the shadow of insecurity looms large.

KiloEx’s breach sends a clear message: no one is immune. As the industry races ahead in innovation, it’s the unresolved issues of security and trust that may define its next chapter. For now, all eyes are on how — or if — KiloEx bounces back. The incident underscores the need for enhanced security measures and stricter regulations to protect against future breaches and restore confidence in the crypto market.