KiloEX, a decentralized exchange for perpetual futures, has announced a detailed payback plan for its affected users. Attackers exploited a weakness in its price oracle system and siphoned off a whopping $7.5 million. However, the system strategically incurred the stolen funds. The exchange is now rolling out new incentives to help rebuild trust. What Happened to KiloEx? The attack happened on April 14, when hackers exploited a weakness in the KiloEX’s price oracle system. Price oracles feed real-time market data into decentralized platforms. The attacker used a wallet linked to Tornado Cash, a mixing service that hides crypto transactions, to carry out the attack. By tricking the price oracle, the hacker tricked the oracle and drained funds across three networks, including Base, BNB Chain, and Taiko. KiloEX immediately paused trading and began investigating the issue. A day later, the team sent a message to the attacker, offering 10% of the stolen funds as a “white-hat” reward. Surprisingly, the hacker refunded the stolen funds and is set to be rewarded $750,000 as promised by the exchange. The attack on KiloEX is part of a bigger problem in the crypto industry, especially in the decentralized finance (DeFi) sector. These attacks often target weak points in the system, such as price oracles, smart contracts, or cross-chain connections. Hackers look for minor errors in the code or system and use them to trick the system and steal money. KiloEX to Compensate Users Based on Trade Resume Time In a blog post, KiloEX said users who had trades open during the ten-day pause will receive compensation. However, the platform has clarified that the payout will depend on when KiloEx resumes trading. Most importantly, the company said compensation will be calculated based on the platform’s resume time. The platform also advised users to close their positions as soon as possible. Waiting too long could lead to differences between the actual Profit or Loss (PnL) and the compensation amount. Similarly, Gate.io has also promised to pay back users for any losses caused by its latest system upgrade. The well-established exchange had to perform an emergency upgrade when its system began to lag due to an unexpected flood of users. KiloEX Offers Rewards and VIP Benefits to Reignite Trust KiloEX is also offering a new reward program for stakers. This move is an effort to support its community and rebuild trust. Nevertheless, this program will only be available for a limited time. In addition, KiloEX has introduced new benefits for VIP users. These benefits reward users who trade large amounts on the platform. The post KiloEX to Compensate Users After $7.5M Price Oracle Attack appeared first on TheCoinrise.com .
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