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- KiloEx suffered a $7M exploit through a price oracle vulnerability affecting multiple chains including BNB Smart Chain, Base, and Taiko.
- The KILO token dropped 30%, slashing its market cap from $11M to $7.5M and forcing the platform to pause operations.
- KiloEx has launched a bug bounty program to trace the exploit and reinforce its security infrastructure.
The decentralized finance (DeFi) world is once again under fire following a devastating exploit that drained approximately $7 million from the newly launched crypto trading platform KiloEx. The incident, which occurred on April 14, has triggered renewed fears around the security of cross-chain DeFi protocols, leaving both investors and developers on high alert.
Backed by YZi Labs formerly known as Binance Labs and supported by major DeFi players like PancakeSwap and Binance Wallet, KiloEx entered the DeFi space with strong momentum. The platform had just completed its Token Generation Event (TGE) on March 27, quickly gaining traction as a new player in the perpetual trading space.
However, that momentum came to a screeching halt after a sophisticated multi-chain exploit targeted KiloEx’s infrastructure across several networks, including BNB Smart Chain, Base, and Taiko. According to blockchain security firm Cyvers, the attacker used a wallet funded through the controversial crypto mixer Tornado Cash, concealing their identity and origins of funds.
KiloEx Exploit Sends KILO Down 30 %
The exploit was executed through a price oracle vulnerability, allowing the attacker to manipulate asset prices and drain funds across different blockchains in rapid succession. This type of attack is becoming increasingly common in DeFi, as cross-chain protocols introduce new complexities and security gaps.
While KiloEx was expected to offer advanced trading features and multi-chain support, the lack of robust safeguards made it an easy target. Hackers stole millions within hours, forcing the platform to pause all activity to investigate the breach.
The KILO token saw an immediate market reaction, plunging by 30% and wiping out $3.5 million in market cap. From a pre-hack valuation of $11 million, KILO’s cap dropped to just $7.5 million, further reflecting the vulnerability of early-stage DeFi tokens when faced with security incidents.
Investor sentiment has turned sharply negative as trust in KiloEx’s infrastructure eroded. Many are now waiting to see how the project team will respond. They also want to know whether the team will introduce investor protections or compensations
KiloEx Launches Bug Bounty as Hack Fallout Grows
In response to the breach, the KiloEx team is now working on a bug bounty program, aiming to attract ethical hackers to help trace the exploit, identify the core vulnerability, and recover stolen funds. However, the team has not yet confirmed whether they have fully contained the exploit.
Concerns are growing that some of the stablecoins used during the attack, particularly USDC, could be blacklisted by issuers. This blacklisting could make fund recovery even more complicated. Authorities are monitoring the attacker’s wallet, but they have not yet recovered the stolen assets.
This latest crypto hack adds to a growing list of DeFi projects that have fallen prey to security flaws. It highlights the urgent need for stronger oracle protections, improved access controls, and deeper audits especially for platforms operating across multiple chains.
As KiloEx navigates the aftermath, its next steps will determine whether the project can regain user trust or become another cautionary tale in the world of decentralized finance. With cross-chain activity becoming more prevalent, the need for airtight security has never been more critical.
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