Binance announced it recovered $6.1M of stolen KiloEx funds after a price oracle exploit targeting the decentralized trading platform.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
3 mins read
Under the leadership of CEO Richard Teng, Binance has played an important role in recovering stolen funds from the KiloEx hack.
The exchange successfully recovered over $6.1 million in cryptocurrencies after the decentralized exchange (DEX) suffered an attack that resulted in the loss of around $7.5 million across various digital assets.
In a post addressed to the broader crypto community, Teng highlighted Binance’s involvement in responding to the KiloEx hack. He shared a link to a Binance article outlining the exchange’s role in recovering the stolen funds. According to the post, Binance’s security team acted swiftly once the exploit was detected and reported.
$6.1M traced, blocked, and largely recovered by @binance after the KiloEx exploit!
90% of stolen assets are back thanks to ecosystem teamwork and law enforcement.
Learn how 👇https://t.co/7lSeszRI8c
— Richard Teng (@_RichardTeng) May 1, 2025
This effort was supported by additional collaborations to investigate the incident. Relative to the total amount stolen, the portion recovered by Binance accounts for roughly 90%. The exchange stated that it was able to block the hackers’ escape routes using its advanced security infrastructure.
It is also worth noting that Binance added the associated wallet addresses to its internal blacklist checklist, making it easy to track the funds.
The embattled decentralized exchange had promised the hacker a bounty, a make-up strategy to recoup the funds. As highlighted, the bounty will reward anyone who highlights KiloEx’s security infrastructure flaws. In light of the new developments in the hack, the protocol created compensation plans for its users, including traders, Hybrid Vault stakeholders, and VIP users.
Payouts only cover losses incurred up to the point when KiloEx resumes trading, so users were advised to close their positions as soon as possible.
The KiloEx sophisticated attack happened two weeks ago, leaving the trading platform with massive losses. The hacker exploited the platform’s price oracle mechanism to perpetrate this act. They leveraged a flaw in the platform’s price oracle system to manipulate asset prices.
The attacker executed transactions across multiple chains, including Base, BNB Chain, and Taiko networks. Notably, the KiloEx hacker used a wallet funded through Tornado Cash, the crypto mixing tool that has been in the headlines for years now.
As a DEX concerned about the safety of its users’ deposits, KiloEx resorted to the 10% bounty after several abortive investigations. It has threatened to “freeze the stolen funds promptly”, citing that the team was watching the addresses linked to the attack.
To Hacker:
Our investigation, supported by law enforcement, cybersecurity agencies, and multiple exchanges & bridge protocols, has uncovered critical information about your activities.
We are actively monitoring your addresses (0x551f3110f12c763d1611d5a63b5f015d1c1a954c,…
— KiloEx (@KiloEx_perp) April 15, 2025
Apart from Binance, the DEX platform partnered with authorities and cybersecurity partners to resolve the issue. However, it first had to suspend trading activities immediately after the breach. Activities have now returned to normal in the last few days.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
