Thomas Daniels
In an unexpected resolution to a major cybersecurity breach, decentralized exchange (DEX) KiloEx has successfully recovered the entire $7.5 million stolen during an exploit earlier this month. The platform confirmed the full restitution just four days after suspending its operations in response to the breach, initially reported by Cointelegraph on April 15.
Blockchain security platform PeckShieldAlert disclosed on April 18 that addresses linked to the KiloEx exploiter had returned approximately $5.5 million worth of cryptocurrencies. Shortly thereafter, KiloEx announced the complete recovery of all stolen assets through an official statement on X (formerly Twitter).
The restitution followed KiloEx’s offer of a $750,000 “white hat” bounty—equivalent to 10% of the stolen sum—provided the hacker returned at least 90% of the looted assets. The exchange had engaged cybersecurity firms, including Seal-911, SlowMist, and Sherlock, alongside law enforcement authorities to investigate the incident and trace the individual responsible.
Preliminary analyses suggest the breach stemmed from a “price oracle issue,” a vulnerability where smart contracts rely on manipulated or inaccurate asset pricing data, as highlighted by PeckShield on April 14.
With the funds fully recovered and no users sustaining financial loss, KiloEx announced that it will not pursue legal action against the attacker. The company emphasized that the legal closure process is already underway and reiterated its commitment to transparency and fairness.
“In adherence to our agreement, we will award 10% of the recovered amount as a bounty to the white hat involved, recognizing their contribution to improving our platform’s security,” KiloEx stated.
This incident underscores the critical need for enhanced security measures within the cryptocurrency sector. Similar concerns were raised earlier this year when Bybit exchange suffered a record-breaking $1.4 billion hack on February 21, emphasizing the persistent vulnerabilities faced by digital asset platforms.
