KiloEx, a decentralized exchange (DEX), has revealed intentions to reimburse users impacted by a $7.5 million exploit that forced the network to be offline for a while earlier in April.
Due to the breach, which targeted the platform’s smart contracts, traders and liquidity stakers lost significant money. KiloEx has responded by pledging to implement a financial justice and user confidence-restoring refund strategy.
Despite the positive efforts, the $KILO price plunged over 5%. At the press time, the token is trading at $0.04254, down 5.49% as compared to the same time last year.
KiloEx Undertakes Through Investigation for Ongoing Case
In order to identify the precise source of the exploit and stop such events in the future, the KiloEx team said that a comprehensive investigation is currently underway.
Operations were immediately halted to contain the damage after preliminary results indicated that weaknesses in the protocol’s code were exploited.
Before fully resuming operations, KiloEx will upgrade its security architecture in collaboration with auditing companies and industry experts as part of the recovery effort.
The team promises transparency throughout the process, and the compensation scheme will cover verifiable damages for impacted users.
Discussions concerning the security of decentralized platforms, the significance of frequent audits, and sound code practices have all been rekindled by this occurrence.
KiloEx’s prompt action and compensation pledge are indicative of an increasing trend in DeFi projects that place a higher priority on user protection and accountability in the wake of security incidents.
Also Read: Decentralized Crypto Exchange KiloEX Loses $7.5M in Hack, $KIKO Falls by 31%
KiloEx Hybrid Vault Funds Still Safe
KiloEx has informed Hybrid Vault investors that their money is secure in the wake of the recent $7.5 million hack.
In order to guarantee that the principal investments and anticipated profits of both stakers remain untouched, the platform verified that the pilfered monies had been entirely returned to the vault.
KiloEx said it will provide an extra 10% annual percentage yield (APY) as a bonus in an effort to help its community and rebuild confidence. This additional APY will be given to qualified stakers as a token of appreciation for their patience and support while the platform recovers.
The action demonstrates KiloEx’s dedication to user safety and its endeavor to uphold openness and trust among its stakeholder base in spite of the security lapse.
New Compensation Comes After KiloEx Tried Previous Negotiations
KiloEx announced on April 15 that the hacker who stole $7.5 million from the platform would receive a 10% reward.
As a “white hat” reward, the decentralized exchange offered the hacker $750,000 if they returned 90% of the stolen assets. KiloEx threatened legal action and attempts to make the hacker’s name public if they didn’t comply.
Blockchain security platforms found transactions shortly after the offer that suggested the stolen money was being recovered. KiloEx formally announced that it would cease all legal proceedings by April 18 and confirmed the recovery of the assets.
After the hacker received the promised reward, the matter was resolved amicably and user funds were recovered.
Also Read: KiloEx Offers 10% Bounty to Hacker, Sets 72-Hour Deadline for Return of Stolen Funds