$7M KiloEx Exploit: DeFi Security Risks Exposed
$7 Million Hack Hits Binance-Backed KiloEx
KiloEx, a perpetual trading platform backed by YZi Labs (formerly Binance Labs), experienced a significant cross-chain exploit resulting in the theft of approximately $7 million. The attack, which started on April 14, 2025, is ongoing and affects the BNB Smart Chain, Base, and Taiko networks. This incident underscores the critical need for robust security measures within the Decentralized Finance (DeFi) ecosystem.
Attack Details and Response
Analysis by Cyvers reveals the attacker used a Tornado Cash-funded address to execute a series of transactions, exploiting a flaw in KiloEx's price oracle system. The rapid movement of funds across multiple chains highlights systemic vulnerabilities in multi-chain DeFi architecture. KiloEx, launched on March 27, 2025, with Binance Wallet and PancakeSwap, has suspended its platform and is working with security partners to investigate the breach and track stolen assets. They've also announced a bounty program to incentivize white hat hackers to assist in recovery efforts.
Key findings from the incident:
- Vulnerability: Potential price oracle access control vulnerability.
- Impact: Approximately $7 million stolen.
- Networks Affected: BNB Smart Chain, Base, and Taiko.
- Response: Platform suspended, security investigation underway, bounty program launched.
- KILO Token Impact: A 30% drop in value, reducing market capitalization from $11 million to $7.5 million.
Codeum's Role in Enhancing Blockchain Security
Incidents like the KiloEx exploit highlight the importance of proactive security measures in the blockchain space. At Codeum, we are committed to helping projects build secure and reliable blockchain applications. Our services include:
- Smart contract audits
- KYC verification
- Custom smart contract and DApp development
- Tokenomics and security consultation
- Partnerships with launchpads and crypto agencies
By partnering with Codeum, blockchain projects can mitigate risks and build trust with their users. Contact us today to learn more about our comprehensive security solutions.
Disclaimer: This information is for educational purposes only. Always conduct your own research and consult with a financial professional before making any investment decisions.