KiloEx Hack Update: Hacker Returns $1.4 Million in Stolen Crypto
A significant update has come in the recent KiloEx crypto exchange hack. Blockchain security company PeckShield announced on platform X (previously Twitter) that the hacker who stole $7.5 million has returned $1.4 million to KiloEx. The money was transferred directly to the official wallet of the exchange, suggesting potential negotiations and a possible settlement between the hacker and KiloEx.
How the Hack Happened
As the investigation went on, more technical details have emerged. It was recognized as a cross-chain attack, which affected assets in Base, opBNB, and BNB Chain. An oracle manipulation vulnerability was exploited by the attacker to artificially inflate the ETH/USD price to drain funds from the platform.
Oracle manipulation is a form of price manipulation, in which attackers submit false information into a smart contract to manipulate token valuations.
Reports state:
- Base Chain lost approximately $3.3 million
- opBNB lost about $3.1 million
- BNB Chain incurred losses of approximately $1 million
- The total loss amounts to $7.4 million, with a recovery of only $1.4 million so far.
Investigation Progress & Outcomes
As a retaliatory measure to the hack, KiloEx put stock in a reward of $750,000 (10% of the hacked funds) to the attacker, providing a 72-hour grace period. When no word came from the attacker, the company made an official report to Hong Kong Police on April 17 and collaborated with cybersecurity company SlowMist for further investigation. KiloEx has also vowed to publish a full report in the near future.
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User Protection Measures
KiloEx is now actively attempting to restore its trading platform. The firm indicated that all open positions will be closed at pre-attack prices to prevent users from being forced to liquidate. Additionally, a compensation scheme is being developed to restore user confidence and protect the integrity of the platform.
Conclusion
While much of the stolen funds remains unretrieved, recovery of $1.4 million is a remarkable milestone. KiloEx's mature approach—prioritizing transparency, pursuing legal action, and protecting its users—should assist in rehabilitating market trust at this critical time.
