KiloEX, a decentralized exchange (DEX) well-known for its perpetual contract trading, halted its platform on Tuesday after the platform faced a serious hack.
An estimated $7.5 million in customer cash was stolen as a result of hackers taking advantage of a system weakness. This occurrence highlights the ongoing security issues in the decentralized finance (DeFi) industry. Moderate
KiloEX’s Sees Service Suspension After Hack
KiloEX had previously declared no security incidents during 2024, even though it has undergone numerous security examinations by companies like ScaleBit.
The platform’s operations were temporarily suspended due to the breach while the team looks into the extent of the damage and attempts to safeguard the remaining assets.
This attack is a component of a larger pattern in the DeFi domain, where major exploits have been found on platforms. The $10 million attack of Velocore, another DEX, in June 2024, for example, brought to light the weaknesses in even thoroughly audited systems. ​
KiloEX Starts Through Examination
The KiloEX team has started a thorough examination of their security procedures in reaction to the KiloEX breach, and they are working with blockchain security specialists to stop similar breaches in the future. Users are urged to use caution and keep an eye on official channels for situational updates. ​
This incident is a clear reminder of the always changing hazards in the DeFi environment and the necessity of strong security protocols to safeguard user assets.
How Did The Hack Take Place?
Hackers stole almost $7.5 million by taking advantage of a weakness in KiloEX’s price oracle, according to blockchain security company PeckShield.
They took $3.3 million on the BASE network, $3.1 million on opBNB, and $1 million on BSC, according to the breakdown. Data on the price of ETH/USD was manipulated as part of the operation.
When the faked price of ETH jumped to $10,000, the attacker immediately terminated the trade they had formed by causing the oracle to display a fictitious price of $100.
Reports highlight that they were able to pocket $3.12 million in a single transaction. The incident emphasizes the risks of depending on unreliable or insecure price oracles, which can be abused by competent attackers to generate enormous, immediate profits.
Kilo Token Sees Fall
The hack caused a sharp decline in investor trust in KiloEX. According to CoinGecko, Kilo, the platform’s native currency, fell more than 31% to $0.0353.
Kilo has lost over 78% of its value since it peaked on March 27 at $0.1648. Many users have pulled out money and sold their tokens as a result of the occurrence, which has damaged trust in the project.
It demonstrates how rapidly market sentiment may change in the decentralized financial sector when systems are unable to safeguard user assets against vulnerabilities and exploitation.