KiloEx Confirms Full Recovery Of Funds Following $7M Security Breach, Initiates Legal Closure Process
In Brief
KiloEx has recovered the $7 million lost in a recent security breach and is closing the case in cooperation with legal and cybersecurity partners, awarding a white hat bounty to the hacker.
Decentralized trading platform KiloEx announced that it successfully recovered the entirety of the funds involved in a recent security breach that occurred earlier this week, ensuring that no users were left with financial losses.
According to KiloEx, formal proceedings are now underway to officially close the case. This process involves collaboration with legal authorities, KiloEx’s internal legal team, and external cybersecurity experts. The platform acknowledged contributions from third-party professionals, including blockchain security firm SlowMist and on-chain investigator blitezero, who brought expertise to the investigation and recovery efforts.
With all affected funds returned, KiloEx reiterated its commitment to resolving the matter with full transparency and fairness. As part of that effort, a white hat bounty of 10% of the recovered amount will be awarded to the individual who played a critical role in securing the platform during the incident. KiloEx emphasized that it considers this reward not just a gesture of appreciation, but a step toward building stronger, long-term relationships with the ethical hacking and security research community.
As the situation has been resolved without any unresolved claims or disputes, the platform confirmed that it will not be pursuing any additional legal action, signaling a conclusion reached in mutual good faith.
KiloEx Investigates $7M Vault Breach
The security incident earlier this week involved a breach of KiloEx’s vault system, during which irregular transaction patterns were detected across several blockchain networks. A wallet address, which initially received assets through the privacy protocol Tornado Cash, was observed executing a sequence of synchronized transactions on BNB Chain, Base, and Taiko. These actions ultimately resulted in the unauthorized transfer of approximately $7 million in digital assets.
In response to the breach, KiloEx issued a public statement confirming that an investigation had been initiated. The platform reported that the inquiry was being carried out with the support of law enforcement agencies, cybersecurity firms, and key players from the exchange and bridge protocol ecosystem. Preliminary findings have helped uncover important details about the attacker’s activity and the methods used in the exploit. As part of its recovery approach, KiloEx extended a proposal to the perpetrator, offering to treat them as a white hat by allowing them to retain a part of the stolen funds.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in crypto, AI, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
