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The Coin Rise 2025-04-18 22:00:28

KiloEx Recovers $7.5M Siphoned After Major System Breach

KiloEx Recovers $7.5M Siphoned After Major System Breach

KiloEx, a decentralized exchange, has recovered all of the $7.5 million stolen in a recent hack . This happened just a few days after the attack was discovered. Instead of using legal threats or launching an investigation, KiloEx tried a different method. This method could set a precedent and change how similar cases are handled. How the Hack Happened On April 14, Cyvers, a blockchain security firm, detected a serious breach on KiloEx. The main problem came from the platform’s price oracle, a tool that gives price updates to the exchange. Sadly, the attacker found a way to manipulate this tool. The attacker exploited the system’s weakness and took advantage of price differences on several blockchains, like BNB, Base, and Taiko. The bad actor siphoned the stolen funds through a wallet on Tornado Cash, a crypto-mixing platform often used for money laundering and hiding stolen funds. The wallet used in the hack received money through Tornado Cash. Tornado Cash is a tool that mixes different crypto transactions to hide where the money comes from. Hackers and criminals often use it to cover their tracks and move stolen money without being caught. This got people worried that the money might be lost forever. However, KiloEx did not give up. Hacker Returns $7.5M, Gets $750,000 Reward Soon after the breach, KiloEx made an unusual proposal. The exchange told the attacker that if the money were returned, it would receive 10% as a reward. This kind of reward, often called a bounty , is typically offered to white-hat hackers, who are ethical hackers who help expose security flaws without harming others. To everyone’s surprise, the attacker returned all the stolen funds. KiloEx said it would be true to its word and give the hacker 10% of the recovered amount, which amounts to $750,000. The company said the reward was a way of thanking the individual for helping improve its security. KiloEx Solves Hack Issue with No Legal Battle Rather than press charges or open a legal case, KiloEx said it considers the issue resolved. The company praised the outcome and emphasized building trust with ethical hackers. The exchange believes that working with security experts is a better way to protect users and grow stronger as a platform. So far this year, hackers and exploiters have stolen about $2 billion from different platforms. In most cases, the funds were never recovered, and the attackers vanished. Yu Xian, a respected figure in blockchain security, said the decision to return the funds and claim the bounty is rare and difficult. However, it might be the smartest option for hackers who realize the damage they could cause. The post KiloEx Recovers $7.5M Siphoned After Major System Breach appeared first on TheCoinrise.com .

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