A significant exploit has hit the newly launched DeFi trading platform KiloEx, resulting in an approximately $7 million loss. The attack has sparked panic among investors and raised serious concerns about the security of cross-chain platforms.
According to blockchain security firm Cyvers, the exploit began on April 14 and affected three networks: BNB Smart Chain, Base, and Taiko. The attacker funded their wallet through Tornado Cash before executing price manipulation transactions using KiloEx’s price oracle vulnerability.
Through this manipulation technique, the hacker could execute fast fund transfers between multiple chains. The incident occurred twenty-one days after KiloEx conducted its Token Generation Event on March 27.
The platform gained momentum through its partnerships with Binance Wallet and PancakeSwap before it had to suspend operations.
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Platform Suspended as KILO Token Crashes and Investigations Begin
KiloEx has since paused all trading activity and is investigating the root cause of the vulnerability. The team has launched a bug bounty program to support this effort and is working with white-hat hackers to help trace the stolen assets and prevent further damage.
Authorities continue monitoring the attacker’s wallet while the exploit remains uncontained. The status of USDC stablecoins and other coins remains uncertain because their blocklisting depends on their movement and exchange methods.
KILO token experienced a 30 percent price decrease instantly after the news broke. The market capitalization of the Kilo token declined by $3.5 million after its value dropped from $11 million to $7.5 million within a few hours.
No official statement has confirmed whether the vulnerability has been patched. The DeFi community is following KiloEx’s recovery status to determine whether this incident will become another warning about cross-chain financial risks.
Conclusion
The KiloEx exploit has again shaken trust in DeFi protocols, especially those operating across multiple blockchains. As efforts to recover the stolen funds continue, investor confidence remains fragile.
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