KEY TAKEAWAYS
- Binance successfully recovered $6.1 million in cryptocurrency after a KiloEx exploit, showcasing effective industry collaboration.
- The attack involved price manipulation on KiloEx’s oracle, exploiting cross-chain networks like Base, BNB Chain, and Taiko.
- Swift action by Binance and partners led to the recovery of 90% of stolen assets, emphasizing the importance of ecosystem teamwork.
- The attacker returned funds in exchange for a bounty, highlighting the role of negotiation in resolving crypto exploits.
Binance has successfully traced, blocked, and assisted in the recovery of $6.1 million worth of cryptocurrency following a recent exploit on the decentralized exchange platform KiloEx. The swift response was part of a coordinated effort involving industry partners and law enforcement to cut off the hacker’s exit routes. This collaborative action resulted in the recovery of 90% of the stolen assets, underscoring the importance of ecosystem teamwork in maintaining trust within the cryptocurrency space.
The exploit involved a sophisticated price manipulation attack on KiloEx’s price oracle, a mechanism that brings off-chain data on asset prices onto the blockchain. The attacker used a wallet funded through Tornado Cash, a tool that obscures the origin of crypto funds, to manipulate the oracle. By tricking the system into believing a token was worth far less than its actual market value, the hacker opened leveraged positions and withdrew artificially inflated profits, draining approximately $8.44 million worth of crypto from KiloEx.
The attack exploited KiloEx’s cross-chain setup, affecting networks such as Base, BNB Chain, and Taiko. On April 15, 2025, at around 19:00 UTC, the KiloEx community flagged the exploit. Within 30 minutes, Binance and BNB Chain security teams activated an emergency response, aligning with KiloEx to analyze the exploit and assess the scale of the losses. The vulnerability was traced back to KiloEx’s price oracle system, and Binance quickly identified and blacklisted the wallet addresses involved.
To prevent further movement of funds, Binance’s security team contacted key cross-chain bridge providers to block these addresses. They also reached out to other bridges used by the hacker to gather transaction data and digital traces. This early intelligence helped shape the recovery strategy, leading to targeted communication with the attacker.
Following the identification of the attacker, KiloEx initiated on-chain communication, opening negotiations. Concurrently, a report was filed with law enforcement, adding pressure on the attacker. Approximately 24 hours after the last on-chain message, the attacker agreed to return 90% of the stolen funds in exchange for a 10% white-hat bounty and a halt to further investigations. This resolution was achieved through rapid collaboration, thorough on-chain analysis, and a coordinated ecosystem response.
This case highlights the need for swift industry responses to exploits. Binance remains committed to protecting the ecosystem, improving defenses, and working with partners to prevent future threats. More details on the incident can be found here.
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