Major note
- The Kux Exchange lost $ 7.5m in Oracle exploitation on 15 April.
- The hacker returned all the funds and received 10% reward.
- Kilox stopped trading and promised strong security.
The decentralized finance (DEFI) location hack is not a stranger to draw and exploitation. One of the latest victims, kg, a decentralized exchange (DEX), was hacked on 15 April, which lost $ 7.5 million in the breech.
Kilox, like other decentralized exchanges, depends on the pricing oacles to access the price data for listed tokens and decide at the exchange rates of trading pairs. The hacker exploited this feature by feeding pricing Oracles with manipulated data, allowing them to receive tokens at a very low price.
Kilox’s response to Breach
After the attack, Dex mentioned on its X account that if the hacker returned 90% of the robbery, they would offer a 10% reward of $ 750,000. He also mentioned that he was watching addresses related to the attack and intended to “freeze the stolen funds immediately”.
For hackers:
Our investigation supported by law enforcement, cyber security agencies and many exchanges and Bridge Protocols has highlighted important information about your activities.
We are actively monitoring your address (0x551f110f12c763d1611111111111111111111111111111111
– kg (@kiloex_perp) 15 April, 2025
He further revealed that he would work with officials and cyber security partners to resolve the issue. Trading activities were stopped soon after the violation by KUCEX.
Kilox receives stolen money
Behind the exploitation, the hacker returned the stolen tokens in a kilometer. A few days later, Dex announced on its X page that it has completely recovered the money and planned to reward the white cap for choosing to return them.
As a performance of good belief, Dex said that it was giving a prize of 10% of the token recovered to the white cap to highlight the deficiencies of the safety infrastructure. Dex has also revealed that it does not intend to pursue “further legal action” and considers Breach “solved in good faith”.
Dear community,
We are happy to announce that we have a successful recovery of all the stolen funds related to the recent security incident. This result underlines our commitment to protect the user’s property and promote a safe ecosystem.
1. Case resolution progress
– legal…– kg (@kiloex_perp) April 18, 2025
Kilux appreciated its partners and community members for standing with them and revealed that it intends to continuously improve its safety architecture.
Despite the positive resolution in this case, the crypto scams and hacks are increasing in the world.
A remarkable example is The Bibit Hack that happened some time ago, where the North Korean-Linked Hackers were reportedly behind a major violation, which highlighted the growing sophistication and international scale of the crypto-related cyber crime.
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