KiloEx Offers $700,000 to Hacker After Oracle Attack

The attacker took $7 million in cryptocurrencies from the decentralised platform using an 'oracle attack'.

KiloEx, a decentralised perpetual futures exchange, offered the hacker who breached it $700,000 to return some of the stolen funds. The attack took place on the evening of 14 April. The hacker manipulated the prices of the tokens and managed to withdraw $7 million in cryptocurrencies from the platform.

Cyvers was the first to report the attack. According to reports, the attacker managed to withdraw cryptocurrencies from several blockchains: Base, BNB Chain and Taiko. The KiloEx team has since confirmed the attack, suspended the platform, and stated that 'the vulnerability has been isolated' and an investigation has been launched.

During the attack, the hacker exploited a vulnerability in the management of the price oracle. The oracles collect price data from various networks and provide it to decentralised applications such as KiloEx to determine asset prices during trading.

In this case, the attacker took advantage of a flaw in KiloEx's pricing system and induced the platform to accept false quotes. He then executed several leveraged transactions, according to The Block. Data shows that a single transaction that took place during the attack was worth over $3 million.

KiloEx offers hacker a deal to return 90% of funds

On 15 April, the KiloEx team contacted the hacker with a proposal: return 90% of the stolen funds. The platform offered to leave the remaining 10% (about $700,000) to the hacker as a "reward".

"We will post a tweet acknowledging your cooperation and close the case without further action. If you agree, please contact us," the exchange team wrote.

KiloEx said that if you refuse, it will cooperate with law enforcement and take legal action:

"In the event of non-cooperation, we will send the investigation materials to our cybersecurity partners and the appropriate authorities. Your identity and actions will be disclosed. We will pursue legal action relentlessly. The choice is yours. Act now to avoid irreversible consequences," threatened KiloEx.

The scheme, known as an 'oracle attack', has been used before. In 2022, Abraham Eisenberg stole about $110 million from Mango Markets using what he called a "high-yield trading strategy" that alters prices in the futures market. He was subsequently arrested in Puerto Rico and extradited to the United States, where he was convicted of fraud in 2024.

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