The decentralized exchange KiloEX has halted its operations after suffering a $7.5 million exploit. This incident has prompted urgent investigations in collaboration with both security firms and blockchain partners.
The KiloEX team confirmed the breach on April 14, 2025, announcing they have suspended platform usage to trace and potentially recover the stolen assets.
In a public statement on X, they declared that the exploit had been contained and they are currently analyzing how the attack occurred. “The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” they reported.
KiloEX Teams Up with BNB Chain and Cybersecurity Firms to Investigate $7.5M Hack
KiloEX has partnered with BNB Chain, Manta Network, and cybersecurity firms Seal-911, SlowMist, and Sherlock to assist in the investigation. They expressed that they are collaborating with ecosystem partners to trace and recover funds where possible.
Reportedly, the stolen assets are being funneled through zkBridge and Meson. The exchange is in urgent communication with both protocols to halt transactions and minimize further damage.
A complete analysis report is underway, alongside a proposed bounty program aimed at incentivizing either the return of the funds or identification of the hacker.
Cybersecurity firm PeckShield, which is helping with the investigations, attributed the exploit to a likely “price oracle issue.” In a post on X, they detailed how a malicious actor manipulated the ETH/USD price in a smart contract, leading to a $3.12 million profit from a single manipulated transaction.
Compromised assets include $3.3 million on Base, $3.1 million on opBNB, and $1 million on Binance Smart Chain (BSC).
The @KiloEx_perp protocol was hacked today with a loss of approximately $7.5 million ($3.3 million in Base, $3.1 million in opBNB, $1 million in BSC). The protocol is now paused! Our initial analysis on the exploit indicates a price oracle issue. — PeckShield Inc. (@peckshield) April 14, 2025
Blockchain analytics expert Chaofan Shou, co-founder of Fuzzland, also highlighted flaws in KiloEX’s price oracle mechanism, stating that although the platform limited access to trusted forwarders, it failed to verify the forwarded caller, which he classified as a “very simple vulnerability.”
KiloEX Token Drops 27% Following the $7.5M Exploit
The hack has negatively impacted KiloEX’s native token, KILO, which has seen a decline of over 27% since the incident. The token is now trading at $0.03596, a fall from its all-time high of $0.1648 reached in late March, according to CoinGecko.
Founded in 2023, KiloEX has backing from Binance Labs and recently formed a partnership with DWF Labs, a Dubai-based Web3 venture capital firm. The hack comes just a day after the partnership was announced, causing uncertainty regarding KiloEX’s immediate plans and user confidence.
Over $1.63 billion in cryptocurrencies were stolen in the first quarter of 2025, with a staggering 92% of that loss attributed to the massive Bybit hack in February. January recorded $87 million in losses, while February saw a sharp increase to $1.53 billion, which included attacks on Infini, zkLend, and Ionic.
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