KiloEX falls victim to $7.5M hack

The crypto market is like a high-stakes poker game. The chips are digital and the risks are sky-high.

This week, the decentralized exchange KiloEX folded under pressure after a $7.5 million exploit. And the culprit?

A sneaky little thing called a price oracle exploit. Sounds technical, sure, but let me break it down, it’s like the dealer rigging the deck while everyone else plays blind.

The @KiloEx_perp protocol was hacked today with a loss of ~7.5m ($3.3m in base, $3.1m in opBNB, $1m in BSC).

The protocol is now paused! Our initial analysis on one exploit tx indicates a price oracle issue. And the hacker exploits it to create a new position with initial given…

— PeckShield Inc. (@peckshield) April 14, 2025

KiloEX hits pause

KiloEX, backed by Binance Labs and built on BNB Chain, opBNB, and Manta Network, launched in 2023 with big dreams. But now? It’s hit the brakes.

The exchange announced it’s suspending operations to clean up the mess left by this attack.

In a tweet, they assured users that the exploit has been contained (whatever that means), and they’re working with security experts to trace the stolen funds.

🚨 Security Incident Announcement: KiloEx Vault Exploit

Dear KiloEx Community,
We regret to inform you that the KiloEx Vault has been exploited. The attacker’s wallet address is:
0x00fac92881556a90fdb19eae9f23640b95b4bcbd
We urge all partner protocols and platforms to…

— KiloEx (@KiloEx_perp) April 14, 2025

KiloEX is offering the hackers a deal, return 90% of the loot, and they’ll close the case without further action. Generous, huh?

But if the hackers don’t play nice, KiloEX is threatening legal action and promises to expose their identities to authorities. It’s like watching a mafia boss offer an out before things get ugly.

What went wrong?

Now, let’s talk about this price oracle exploit. In crypto, price oracles are like bridges, they bring real-world data, like asset prices into blockchain systems.

But when these oracles get manipulated? Chaos ensues. According to cybersecurity firm PeckShield, hackers used this exploit to mess with Ethereum’s price on KiloEX.

They set it at $100 initially and then closed positions at an inflated $10,000 price tag. That’s downright criminal.

The damage was massive, $3.3 million in Base blockchain tokens, $3.1 million in opBNB tokens, and another $1 million in Binance Smart Chain tokens vanished into thin air.

We’ve seen this movie before

Unfortunately, this isn’t new in the DeFi space. Price oracle exploits have been wreaking havoc for years. Remember Mango Markets?

That Solana-based DEX lost $114 million in October 2022 because of a similar trick. Venus Protocol wasn’t spared either, they lost $100 million in May 2022.

And guess what? The attackers funded their wallet through Tornado Cash, a crypto mixer infamous for enabling private transactions.

It’s like laundering money through a washing machine that spits out untraceable bills. Useful when you live in an opressive regime, but bad actors can use it too.

At this point, KiloEX hasn’t given users a timeline for reopening its doors. They’re preparing a report on the incident and launching a bounty program to investigate further.

But let’s be honest, trust is quite hard to rebuild after something like this.

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