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- KiloEx recovers $1.4M of the $7.4M stolen during a cross-chain attack across multiple blockchains on April 15.
- The hacker exploited a price feed vulnerability, stealing funds from Base, opBNB, and BNB Chain in the attack.
- Police investigation in progress, with cybersecurity firm SlowMist helping KiloEx track the hacker’s actions.
The hacker who successfully stole $7.4 million from KiloEx has decided to pay back some of the funds. On April 18, PeckShield reported that $1.4 million worth of USDT was transferred back to the platform address. KiloEx, a perpetual trading platform built by YZi Labs, was attacked across chains on April 15. It affected several chains, namely Base, opBNB, and BNB Chain.
The exploit was with the price feed feature of the platform, and the hacker was able to change the ETH/USD rate and steal the money. The total amount of money lost was as follows: Base lost $3.3 million, opBNB lost $3.1 million, and BSC lost $ 1 million.
KiloEx Offers White-Hat Reward
The theft was initially noticed by Cyvers Alerts, which tracked the stolen money to a wallet funded through Tornado Cash. However, the hack was quickly noticed by KiloEx, and they demanded that the hacker return the coin within 72 hours, offering a 10% white-hat reward as motivation. The platform also informed the attacker that its addresses are being tracked to prevent any mishap, and the funds will be frozen.
When the hacker did not reply, KiloEx decided to escalate the matter by reporting the issue to the Hong Kong police on April 17. The company also utilized the services of cybersecurity firm SlowMist during the investigation.
KiloEx has published some information to the police, having received users’ feedback regarding the hack. The company is also preparing a detailed statement on the event’s unfolding as the investigation continues.
Negotiations Show Progress
The $1.4 million has been recovered, although it represents only a small proportion of the embezzled amount. However, it shows some signs of how the ongoing negotiations are being conducted. KiloEx has not provided further information, including whether additional discussions are underway or if further funding will be repaid.
Meanwhile, KiloEx is forging ways to revive its trading business. The platform has reassured people that the open positions will be closed at the price level before the attack. Thus eliminating cases for forced liquidations. KiloEx is yet to launch a specific variety for the user compensation plan, though extra details are still pending to release.
