KILO Token from KiloEx Rises as Rapid Fund Recovery Follows ‘Advanced’ Hack
KiloEx, a decentralized exchange (DEX) for trading perpetual futures, announced on Friday that it has successfully recovered all of its hacked funds following a sophisticated attack that resulted in losses of around $7 million for its users. The DEX is currently finalizing the legal process of recovery and will award 10% of the recovered amount as a bounty to the white hat hacker who participated in the effort. “The legal process to formally close the case is now underway, in coordination with judicial authorities, our legal team, and third-party experts (special thanks to @SlowMist_Team@blitezero, who have extensive experience in such matters),” KiloEx stated in a social media post on Friday. In response to the recovery news, KiloEx’s native token KILO saw an increase of more than 14% over 24 hours, while the broader market gauge CoinDesk 20 Index remained stable on Friday.
The crypto industry has faced numerous hacks and exploits, leading to billions of dollars lost to attackers. According to blockchain security firm CertiK, hackers stole $1.67 billion worth of cryptocurrency in the first quarter of 2025, reflecting a staggering 303% increase from the previous quarter, with most of the Q1 losses attributed to the significant $1.45 billion Bybit hack.
The KiloEx exploit on April 15 unfolded across various blockchain networks and appeared to stem from a vulnerability in the platform’s price oracle system, as noted by blockchain analysis firm Cyvers. Oracles are blockchain-based tools that relay external data to a blockchain, enabling smart contracts to make decisions for financial applications. The attacker leveraged a wallet funded through Tornado Cash and executed a series of transactions on the Base, BNB Chain, and Taiko networks to exploit a flaw in the platform’s price oracle system, allowing them to manipulate asset prices.
Unlike many other cases of crypto exploits, the outcome for KiloEx was notably positive, as most scenarios do not yield such favorable results. CertiK’s report highlighted that only 0.38% of stolen funds were recovered in the first quarter, compared to 42.09% in the previous quarter. A notable trend from KiloEx’s resolution is the community’s collective effort to recover funds rather than relying on prolonged court battles, which often leave investors with significant losses. Nevertheless, the exploit serves as a stark reminder of the serious risks within decentralized finance, where minor vulnerabilities can lead to substantial consequences, ultimately challenging trust in the underlying code.
