Binance has successfully recovered most of the stolen funds from a recent exploit that hit decentralized exchange KiloEx. The attack, which shocked many in the crypto space, involved deliberately manipulating the platform’s price oracle mechanism.
Binance CEO Richard Teng stated that the exchange played a crucial role in recovering the stolen funds. Binance’s security teams moved quickly after the exploit was detected, tracing and blocking the movement of funds associated with the attacker. Around $6.1 million out of the $7.5 million stolen was recovered.
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A vulnerability in the Oracle system allowed the hacker to access outside blockchain data and distribute it on-chain. To avoid being traced, the attacker used Tornado Cash to fund a wallet on KiloEx, masking the source of the assets.
The manipulated data tricked the system into believing a token’s price was significantly lower than its actual market value.
This deception allowed the hacker to drain funds by making trades based on the false price, resulting in massive losses for the platform. However, once suspicious activity was flagged, Binance cooperated with other industry players to counter the threat.
Rapid Response by Binance Stops Hacker in His Tracks
Binance used advanced security tools to track the hacker’s activity across the blockchain. The team managed to freeze associated assets and cut off the attacker’s access to most of the stolen crypto. The recovery of over 90 percent of the funds marked a significant victory for the exchange and its partners.
Real-time partner collaboration through communication channels demonstrated the importance of immediate coordination for handling dispersed threats. KiloEx users have since been reassured that most of the stolen assets are now safe.
Decentralized finance encountered more risks through the KiloEx exploit, which exposed the significant dangers caused by Oracle vulnerabilities in decentralized finance systems. Binance responded efficiently, stopping further damage and recovering significant portions of stolen assets.
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