How KiloEx Recovers $7M Hacked Funds from DEX with 10% Bounty

How KiloEx Recovered Hacked Funds After Major Exploit

KiloEx, the decentralized exchange (DEX), successfully recovered all of the $7 million in funds stolen during a recent hack, showcasing the resilience of its community and legal team. The DEX is also offering a 10% bounty to the ethical hacker who assisted in the recovery effort, marking a rare positive outcome in the troubled world of decentralized finance.

Background and Context

The recent hack of KiloEx, a decentralized exchange (DEX), highlights both the ongoing risks associated with decentralized finance (DeFi) and the growing resilience of the crypto community. In mid-April 2025, KiloEx reported a loss of approximately $7 million due to a sophisticated attack that exploited vulnerabilities in their price oracle system. This incident is part of a disturbing trend wherein the crypto industry has seen a staggering rise in hacking incidents, with CertiK reporting thefts amounting to $1.67 billion in just the first quarter of 2025, a 303% increase from the previous quarter.

The fact that KiloEx successfully recovered all hacked funds is particularly significant, as most exploits result in irreversible losses for users. In contrast, only 0.38% of stolen funds were returned in the same timeframe, underlining the rarity of such recoveries. What makes KiloEx’s recovery notable is how the community swiftly collaborated to recover the funds, illustrating a proactive approach against DeFi risks.

This incident serves as a crucial reminder of the importance of robust security in DeFi and how KiloEx recovered hacked funds from DEX demonstrates potential pathways for future recoveries in the industry.

KiloEx’s Swift Recovery from a Major Hack

KiloEx, a decentralized exchange (DEX) specializing in perpetual futures trading, faced a significant challenge this week when a sophisticated hack led to a staggering $7 million loss. However, the DEX announced on Friday that it successfully recovered all hacked funds, highlighting the resilience of the DeFi space. This incident underscores the risks involved in decentralized finance but also showcases rapid recovery efforts that can contrast sharply with typical exploit cases.

How KiloEx Recovered Hacked Funds from DEX

The recovery process involved teamwork with judicial authorities and blockchain security experts. “The legal process to formally close the case is now underway, in coordination with our legal team and third-party experts,” KiloEx stated in a social media post. Notably, the platform is rewarding a 10% bounty to the white hat hacker who assisted in the recovery.

In a fascinating turn of events, KiloEx’s native token, KILO, surged over 14% within 24 hours following the announcement of the recovery. This contrasted with the broader market, where the CoinDesk 20 Index remained steady. The crypto industry as a whole has been grappling with substantial security issues, with blockchain security firm CertiK reporting that hackers stole $1.67 billion in Q1 2025 alone, a 303% increase from the previous quarter.

• The KiloEx hack involved exploiting a vulnerability in the platform’s price oracle system, allowing the attacker to manipulate asset prices.
• Hacker tactics included utilizing a wallet funded via Tornado Cash and executing transactions across multiple blockchain networks.

Despite the challenges presented by this exploit, KiloEx’s case demonstrates a promising trend of community engagement in fund recovery, rather than lengthy legal battles that typically leave investors in distress. As the DeFi sector evolves, the importance of security and swift remedial actions remains paramount, serving as a reminder of the inherent risks of decentralized platforms.

Analysis of KiloEx’s Recovery from Hack

The recent incident at KiloEx, where the decentralized exchange managed to recover approximately $7 million in hacked funds, underscores both the perils and potentials within the DeFi space. This remarkable recovery, particularly by awarding a 10% bounty to the white hat hacker involved, sets a precedent for collaborative resolutions in an industry rife with vulnerabilities. Such incidents are a stark reminder of the necessity for robust security frameworks; KiloEx’s exploit tied to a flaw in the price oracle system exemplifies how small vulnerabilities can be exploited for significant gains.

This incident is especially poignant given the broader context of the crypto market, where CertiK reported a staggering 303% spike in hacking losses in the first quarter of 2025 alone. The fact that only 0.38% of stolen funds were recovered in that period highlights the exceptional nature of KiloEx’s situation.

For users and investors, this incident showcases the potential for community-driven recovery efforts, ultimately enhancing trust and engagement in decentralized finance. However, the ever-present risks remain, making it critical for participants to understand how KiloEx recovered hacked funds from DEX to foster an environment of security and accountability.