KiloEx decentralized exchange lost approximately $7.5 million in a cross-chain attack
The exploit was caused by a price oracle vulnerability allowing price manipulation
KiloEx has suspended platform usage and is working with security partners to trace funds
The attacker exploited multiple chains including Base ($3.3M), opBNB ($3.1M), and BSC ($1M)
Stolen funds are being routed through zkBridge and Meson protocols
Decentralized exchange KiloEx has confirmed a $7.5 million exploit that occurred on April 14, 2025. The platform immediately suspended all trading operations after discovering the security breach. The exploit affected multiple blockchain networks in what security experts have identified as a cross-chain attack.
The attack was first detected by blockchain security platform Cyvers Alerts at 7:30 PM UTC on April 14. They reported that a wallet funded through Tornado Cash executed suspicious transactions across several blockchains including Base, Taiko, and BNB Chain.
Cybersecurity experts have determined that a price oracle vulnerability was the root cause of the exploit. Price oracles provide smart contracts with external data about asset prices, and in this case, the mechanism was compromised.
How the Attack Worked
According to blockchain security firm PeckShield, the hacker exploited a price oracle issue to manipulate asset prices. This manipulation allowed the attacker to create positions at artificially low prices and close them at inflated values.
In one transaction analyzed by PeckShield, the hacker created a new position with an initial ETH/USD price of $100. They then immediately closed the position at an inflated ETH/USD price of $10,000, netting a profit of $3.12 million in a single transaction.
The @KiloEx_perp protocol was hacked today with a loss of ~7.5m ($3.3m in base, $3.1m in opBNB, $1m in BSC).
The protocol is now paused! Our initial analysis on one exploit tx indicates a price oracle issue. And the hacker exploits it to create a new position with initial given…
Chaofan Shou, co-founder of blockchain analytics firm Fuzzland, described it as a “very simple vulnerability” where attackers could change KiloEx’s price oracle. The system failed to properly verify the caller, despite having some security measures in place.
The highest losses occurred on the Base network at $3.3 million. The opBNB network saw losses of $3.1 million, while the BSC network lost approximately $1 million.
Response and Recovery Efforts
KiloEx has assembled a team of security partners to help trace and potentially recover the stolen funds. The exchange is collaborating with BNB Chain, Manta Network, and cybersecurity firms including Seal-911, SlowMist, and Sherlock.
“The team has immediately suspended platform usage and is working with security partners to trace the flow of funds,” KiloEx stated in an announcement on social media platform X on April 14. “We are analyzing the attack vector and affected assets.”
In a follow-up statement, KiloEx confirmed that the stolen assets were being routed through zkBridge and Meson protocols. The exchange is attempting to engage with both protocols to halt ongoing transactions and prevent additional losses.
Dear KiloEx Community, We regret to inform you that the KiloEx Vault has been exploited. The attacker’s wallet address is: 0x00fac92881556a90fdb19eae9f23640b95b4bcbd We urge all partner protocols and platforms to…
KiloEx has also announced plans to launch a bounty program and release a full report on how the exploit occurred. The exchange is urging other protocols and platforms to blacklist the attacker’s wallet addresses.
The stolen funds include USD Coin (USDC), which may be blacklisted by the token issuers, potentially making it difficult for attackers to convert these funds.
The exploit has impacted the value of KiloEx’s native token, KILO. Following the news, KILO dropped by over 27% to trade at $0.03596. The token remains down more than 78% from its all-time high of $0.1648 reached on March 27.
Market Context
KiloEx was established in 2023 and is backed by Binance Labs as a lead investor and strategic partner. The perpetual DEX is also supported by YZi Labs.
The security breach comes just days after KiloEx announced a partnership with Dubai-based Web3 venture capital firm DWF Labs on April 13. The partnership was intended to expand KiloEx’s market presence and accelerate growth.
On March 25, DWF Labs launched a $250 million Liquid Fund aimed at accelerating the growth of mid- and large-cap blockchain projects and driving real-world adoption of Web3 technologies.
This exploit is part of a larger trend of DeFi security incidents. According to Immunefi’s Q1 2025 report, the first quarter of 2025 was the worst on record for cryptocurrency exploits, with $1.64 billion stolen in total. DeFi protocols lost $106.8 million across 38 separate incidents during this period.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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Security Incident Announcement: KiloEx Vault Exploit