Summary
- KiloEx, a decentralized exchange for perpetual futures, has recovered all $7.5 million stolen in an April 15 exploit
- The hacker unexpectedly returned all funds just 4 days after the breach
- KiloEx offered a 10% “white hat” bounty that likely influenced the return
- The platform’s KILO token surged 14% following the recovery announcement
- This marks a rare positive outcome in the DeFi space, where most stolen funds are never recovered
The Hack and Swift Resolution
With a significant vulnerability exploit targeting its price oracle system, KiloEx faced a potentially devastating $7.5 million loss on April 15. The attack unfolded across multiple blockchain networks including Base, BNB Chain, and Taiko, demonstrating the sophisticated nature of the exploit.
The attacker used a wallet funded through Tornado Cash to execute a series of transactions that manipulated asset prices through a flaw in the platform’s oracle system. For KiloEx users, the hack initially appeared to follow the unfortunately common pattern of permanent losses that have plagued the DeFi sector.
Community-Driven Recovery
What makes this case remarkable is the swift resolution. Unlike typical crypto exploits where stolen funds disappear permanently, KiloEx announced on April 18 that it had recovered 100% of the stolen assets.
The exchange’s proactive approach included offering a 10% bounty to the attacker for the return of the stolen assets—a strategy that proved remarkably effective. This ethical hacking approach highlights an emerging trend in the DeFi space, where platforms are finding creative solutions to security breaches rather than relying solely on lengthy legal battles.
Market Response and Broader Context
The market responded positively to KiloEx’s successful recovery efforts, with its native KILO token surging more than 14% in 24 hours following the announcement. This stands in stark contrast to the typically negative market reactions following crypto exploits.
The KiloEx resolution represents a rare bright spot in an industry plagued by security issues. According to blockchain security firm CertiK, hackers stole $1.67 billion worth of crypto in the first quarter of 2025 alone, with only 0.38% of stolen funds returned during this period.
Looking Forward
While the successful recovery of funds represents a win for KiloEx and its users, the incident serves as yet another reminder of the significant risks inherent in decentralized finance. Small vulnerabilities, particularly in critical infrastructure like price oracles, can lead to substantial losses.
KiloEx continues to work with cybersecurity experts and law enforcement agencies to strengthen its security measures and formally close the case. By honoring its commitment to award the white hat hacker a 10% bounty, the platform is reinforcing positive security practices within the ecosystem—potentially encouraging future attackers to choose collaboration over theft.