Hackers Strike Again: KiloEx Exploit Sends Token Crashing 30%
Despite a temporary decline in activity in the Web3 market and a corresponding drop in investor interest, hacker attacks have not subsided. In fact, in some cases, they are becoming increasingly sophisticated and successful, resulting in large-scale thefts of digital assets. In today’s article, Coinmooner discusses a recent incident that once again highlights the importance of security in the world of decentralized finance.
Recently, the decentralized trading platform KiloEx suffered a severe hacker attack. According to experts at Cyvers, a company specializing in blockchain security, the attacker carried out the exploit across three different networks: BNB Smart Chain, Base, and Taiko. Using the cryptocurrency mixer Tornado Cash to hide the trail of their transactions, the hacker got initial funds and then exploited a vulnerability in KiloEx’s price oracle. This flaw enabled them to manipulate asset prices and quickly transfer funds between networks, capitalizing on the platform’s vulnerabilities.
It is worth noting that KiloEx presents itself as an innovative, decentralized solution for trading perpetual contracts. The platform enables traders to execute trades almost instantly, track market movements in real-time, and utilize an intuitive interface. For liquidity providers (LPs), it offers convenient tools to join the market with low risk, creating an attractive infrastructure for working with decentralized finance.
How a Single Flaw in KiloEx Opened the Door to a Multi-Chain Attack
After the incident, the KiloEx team decided to pause trading on the platform to prevent further losses. As part of their security response, they launched a bug bounty program, offering rewards for identifying vulnerabilities. They also began working with so-called “white-hat hackers” to track and recover the stolen crypto assets and to blacklist the addresses connected to the attacker. However, KiloEx has not yet confirmed whether the vulnerability that enabled the attack has been fixed.
Interestingly, this incident happened just twenty-one days after the launch of the KILO token. The project initially garnered strong attention thanks to strategic partnerships with Binance Wallet and PancakeSwap. However, the attack had severe consequences: the KILO token’s price dropped by almost 30% in a single day, and trading volume fell by more than 74%, down to $65.5 million. The token’s market cap dropped by $3.5 million from $11 million to $7.5 million in just a few hours.
It is worth noting that similar incidents have already occurred in the Web3 space. In 2022, the Mango Markets platform suffered a significant attack, resulting in a loss of $114 million. The DeFi protocol Cream Finance also experienced a similar fate, with losses of around $110 million. All of this points to a systemic security problem in decentralized financial systems.
To conclude, Coinmooner wants to remind everyone in the Web3 space that protecting your digital assets is not just a suggestion. It’s a necessity. Use modern cybersecurity tools, don’t skip smart contract audits, and choose the platforms you work with carefully. Only this way can you minimize risks and safeguard your funds in the ever-evolving world of blockchain technology.
