Hackers have hit the cryptocurrency exchange platform KiloEx hard, stealing over $7 million. This major attack forced the platform to halt operations, raising serious concerns about the security of decentralized exchanges. As technical teams work on tracing the funds, the impact of this incident on the crypto market is starting to be felt. An in-depth look at a vulnerability that could shake investor confidence.
During the night, the cryptocurrency exchange platform KiloEx fell victim to a major hack, resulting in a $7 million breach.
According to KiloEx reports, the platform’s safe was compromised by hackers. The team claims to have promptly acted by suspending platform usage to prevent further damage. While technical details of the attack have not been disclosed, KiloEx is closely collaborating with its crypto ecosystem partners to trace and recover funds if possible.
Initial analyses suggest that the breach may originate from an access control issue in the price oracle. According to Fuzzland co-founder Chaofan Shou, anyone can manipulate KiloEx’s price oracle as their smart contract verifies the caller as a trusted proxy, but does not verify the forwarded caller. A seemingly exploitable vulnerability.
As per Cyvers Alerts, KiloEx’s safe was attacked on multiple chains. The hacker also used a Tornado Cash address to carry out transactions on BNB, Base, and Taiko. In total, $3.3 million on Base, $3.1 million on BNB, and $1 million on BSC were stolen. Just 10 hours ago, Cyvers Alerts stated the attacker was still actively targeting the system.
“The main cause of the exploitation of KiloEx is the lack of access control in the higher-level contract (MinimalForwarder), which leads to manipulation of the Oracle prices.” explains the SlowMist team.
The price of the platform’s native token, KILO, plummeted by 27%. A rapid drop, merely taking the price back to its level three days ago. Given that the attack has been contained, it seems plausible for the platform to resume operations once the vulnerability is resolved.
Launched less than a month ago, the KILO token has already lost 75% compared to its all-time high, which was its initial launch price.
Meanwhile, the perpetual platform announced yesterday its intention to release a report on the event in the near future and is still investigating the attack.
However, the KiloEx hack raises serious concerns regarding the security of decentralized platforms (DEX). Despite the platform’s efforts to contain the attack, the loss of over $7 million risks undermining investor confidence. User Ben.sol testifies, stating a loss of $65,000 due to the platform hack. “Just another disappointment,” he writes.
This underscores the need for much more thorough audits to prevent such incidents. As the crypto industry aims to mature, this type of event highlights the crucial importance of security and transparency in preserving user trust. The KiloEx technical teams will need to learn from this attack to strengthen their defenses and regain market trust.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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