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Decentralized exchange (DEX) KiloEx has announced its plan to fully compensate traders and stakers impacted by a recent $7.5 million exploit that forced the platform to temporarily halt operations earlier this month. The announcement, made on April 24th, offers relief to users who were caught in the crosshairs of the security breach.
Full Compensation for Affected Traders
KiloEx stated that traders who had open positions during the platform’s suspension will receive complete compensation for any losses incurred or profits diminished due to the halt. The DEX pledged to cover the difference, urging traders to promptly close their positions once trading resumes to ensure accurate calculation of compensation. “Please close your position as soon as possible after the platform resumes. Compensation will be calculated based on the platform’s resume time,” the KiloEx team advised. This move aims to restore trust and mitigate financial damage to its trading community.
Stakers Remain Unaffected with Added Bonus
In positive news for its Hybrid Vault stakers, KiloEx confirmed that the entirety of the stolen funds has been successfully reintegrated into the vault. As a result, the principal amounts and earnings of stakers will remain completely unaffected by the exploit. Demonstrating a commitment to its users, KiloEx will also provide an additional 10% annual percentage yield (APY) as a bonus for eligible stakers. This bonus will be granted to users who had funds staked in the vault prior to the platform’s reopening.
Also Read: Crypto Whale Exposed: British Hacker William Parker Tied to $20M Trading Scheme
Hacker Returns Funds, Receives Bounty
The announcement follows a dramatic turn of events where the hacker responsible for the $7.5 million exploit returned the stolen funds after KiloEx offered a 10% bounty for their return and threatened legal action. Security platforms had earlier flagged transactions indicating the return of the funds. KiloEx confirmed on April 18th that it would withdraw all legal action against the hacker and honor the 10% white hat bounty.
The exploit, which occurred on April 14th, was attributed to a price oracle vulnerability that allowed the attacker to manipulate prices for illegitimate profit. KiloEx has since conducted a post-mortem, confirming the attacker exploited a permissionless function to execute the malicious trades.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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