KiloEX Suspends Platform After $7.5M Security Breach

Decentralized exchange KiloEX suspended its platform on April 14, 2025, following a significant security breach that resulted in the loss of $7.5 million. The exploit was detected, and the platform was immediately halted to contain the damage. KiloEX confirmed the incident via a statement on X, announcing that it had suspended operations and was collaborating with leading blockchain security companies to investigate the breach and trace the flow of funds.

The exchange also revealed plans to launch a bounty program, offering rewards for assistance in recovering the stolen assets. This move is aimed at leveraging the community's help in mitigating the impact of the exploit and ensuring that as much of the stolen funds as possible are recovered.

Blockchain security firm PeckShield provided a detailed analysis of the exploit, highlighting how attackers manipulated the price oracle to siphon funds. According to PeckShield, the hacker exploited a flaw in the price oracle, allowing them to manipulate ETH/USD prices dramatically. The attacker opened a new position with ETH priced at $100, then immediately closed it with an artificially inflated value of $10,000, securing a $3.12 million profit in a single transaction.

KiloEX has enlisted the support of various blockchain networks and security experts, including BNB Chain, Manta Network, Seal-911, SlowMist, and Sherlock. These entities are working together to trace and recover the stolen funds, aiming to minimize the impact on users. The collaborative efforts underscore the importance of community and industry support in addressing security breaches within the decentralized finance ecosystem.

This incident highlights the ongoing vulnerabilities within decentralized finance platforms. The exploit at KiloEX comes shortly after a similar breach at another prominent crypto exchange, underscoring the need for enhanced security measures and continuous vigilance in the industry. The incident serves as a reminder of the risks associated with decentralized finance and the importance of robust security protocols to protect user funds.