According to Cointelegraph, the decentralized trading platform KiloEx announced plans to compensate traders and investors affected by a $7.5 million hack that temporarily halted its operations in April. In a statement released on April 24, KiloEx reassured traders with open positions during the downtime that they would receive full compensation for any increased losses or diminished profits. The platform committed to covering the gap, emphasizing the need for traders to quickly close their positions once operations resumed to ensure accurate compensation accounts.
KiloEx also assured its hybrid treasury investors that the stolen funds had been fully reinvested into the treasury, leaving investors' profits and capital unaffected. Additionally, the platform promised an extra 10% annual return as a bonus for qualified investors who had funds in the treasury before the platform resumed. This measure aims to reassure users of the platform's commitment to safeguarding their investments.
Earlier, on April 15, KiloEx offered a 10% bounty for the hacker responsible for the breach, allowing him to keep $750,000 if he returned 90% of the stolen funds. The platform warned against revealing the hacker's identity and pursuing legal action if he failed to comply. Subsequently, security platforms detected transactions indicating that the hacker had returned the stolen funds. By April 18, KiloEx announced that it would drop all legal actions and reward the hacker with the promised 10% white hat bounty.
The hack, which occurred on April 14, was due to a vulnerability in the price oracle that allowed the attacker to manipulate prices for illicit gains. Security firm PeckShield identified the vulnerability, noting that the attacker exploited an unrestricted function to craft unauthorized requests. This allowed the attacker to open a position at a artificially low price and close it at a higher price, resulting in illicit profits. KiloEx confirmed these findings in its post-incident report, stressing the need to enhance security measures to prevent future incidents.