KiloEx's $7.4M Crypto Heist: Hackers Strike, Exchange Fights Back!

KiloEx, the buzzing decentralized perpetuals exchange, just got rocked by a staggering $7.4 million hack. They've already hit up the Hong Kong police and are scrambling to roll out a compensation plan to keep their users' spirits up.

In a raw update straight from X, the platform's crew spilled the beans about teaming up with the Hong Kong police's Criminal Division and Cybercrime Unit, along with the blockchain security gurus at SlowMist. They're all in, hunting down the slick hacker who pulled off this digital heist.

The chaos kicked off on April 15, when some crafty attacker exploited a weak spot in the price oracle. They twisted the ETH/USD prices like a pretzel, raking in millions in one audacious move. The cyber watchdog Cyvers Alerts caught the weird cross-chain action happening across Base, Taiko, and BNB Chain, sounding the alarm first.

PeckShield broke down the damage: Base got hit for $3.3 million, opBNB bled out $3.1 million, and BSC lost $1 million. Ouch!

KiloEx moved fast, patching up the vulnerability and making it crystal clear: no open positions will get liquidated. They'll close all positions using price snapshots taken right before the attack hit. And get this—any profits or losses from the chaos? They won't count towards your final balance.

The exchange didn't just sit back; they went on the offensive, sending four bold on-chain messages to the hacker. They threw out a deal: return 90% of the stolen loot, and KiloEx will drop the chase. So far, crickets. The stolen funds are still chilling, untouched. KiloEx also blasted out the hacker's wallet addresses and got both centralized and decentralized platforms to slam the door on further shenanigans.

Tentative compensation plan

To keep everyone calm, KiloEx is out there hustling to raise funds for a solid compensation plan. They're promising to bring back the Vault function as soon as they nail down the details.

"We're grinding to raise funds and craft a compensation plan so our users can bounce back fast," KiloEx declared. "The Vault function will come back online once we've got the plan locked in. Your funds in the Vault? They're safe and sound."

The team shot down any whispers of an inside job, pointing out that both SlowMist and the cops have got full access to their internal data. No shady business here.

They're gearing up to drop a full report as soon as the investigation wraps up. Trading's set to fire back up soon. And hey, KiloEx, backed by YZi Labs, is even throwing down bounties for any juicy tips from users that help crack this case wide open.