TLDR:
- KiloEx decentralized exchange suffered a $7.5 million exploit across multiple blockchains
- The attack likely stemmed from a price oracle vulnerability that allowed price manipulation
- Platform usage has been suspended while KiloEx works with security partners to trace funds
- Stolen funds are being routed through zkBridge and Meson
- The hack sent KiloEx’s native token plunging by 27% to $0.03596
KiloEx, a decentralized perpetuals trading platform, has confirmed it suffered a $7.5 million exploit due to a price oracle vulnerability. The attack, which occurred on April 14, has prompted the exchange to suspend all platform operations while investigations continue.
The exploit was first detected by blockchain security platform Cyvers Alerts on April 14 at 7:30 PM UTC. Security experts quickly identified the attack as targeting multiple blockchains, including Base, opBNB, and BNB Chain (BSC).
KiloEx immediately took action to contain the breach. “The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” the company stated in an April 14 announcement on X (formerly Twitter).
🚨 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
Cross-Chain Attack Details
The attack targeted multiple blockchain networks. According to cybersecurity firm PeckShield, the exploiter stole approximately $3.3 million from Base, $3.1 million from opBNB, and $1 million from the BNB Chain.
Security experts have determined that the root cause was likely a price oracle issue. Price oracles provide external data to smart contracts, and in this case, the attacker managed to manipulate these price feeds.
PeckShield explained the exploit method: “The hacker exploits it to create a new position with initial given ETH/USD price of 100 and then immediately close the position with inflated ETH/USD price of 10000, netting the $3.12m profit in one single transaction.”
Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, described it as a “very simple vulnerability.” According to Shou, “Anyone can change the Kilo’s price oracle. They did verify that the caller shall be a trusted forwarder, though, but didn’t verify the forwarded caller.”
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
Recovery Efforts Underway
KiloEx is not facing this crisis alone. The team has enlisted the help of several security partners and blockchain networks in its recovery efforts.
“We are collaborating with ecosystem partners to trace and recover funds where possible,” KiloEx stated. This collaboration includes working with BNB Chain, Manta Network, and cybersecurity firms Seal-911, SlowMist, and Sherlock.
The team has identified that the stolen assets are currently moving through cross-chain bridges. “Our investigation has confirmed that the stolen assets are currently being routed through zkBridge and Meson,” KiloEx announced. “We are urgently attempting to engage with both protocols to halt ongoing transactions and prevent additional losses.”
A bounty program to incentivize the return of stolen funds is in development. The exchange has also promised to release a comprehensive postmortem report detailing how the exploit occurred.
Market Impact
The news of the exploit has had a harsh impact on KiloEx’s native token, Kilo. Following the announcement, the token price dropped by over 27% to $0.03596, according to data from CoinGecko.
Despite this recent drop, the token remains well below its all-time high. Kilo reached $0.1648 on March 27 but has since fallen by over 78% from that peak value.
The timing of the exploit is unfortunate for KiloEx, which had recently announced a strategic partnership. Just one day before the attack, on April 13, the exchange had revealed a new partnership with Dubai-based Web3 venture capital firm DWF Labs.
This partnership was intended to expand KiloEx’s market presence and accelerate its growth. DWF Labs has been active in the blockchain space, having launched a $250 million Liquid Fund on March 25 to support mid- and large-cap blockchain projects.
KiloEx was established in 2023 and counts Binance Labs among its major backers. Binance Labs serves as both a lead investor and strategic partner for the exchange.
Oliver Dale
- Website
- X (Twitter)
Editor-in-Chief of CoinCentral and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact Oliver@coincentral.com
