Decentralised exchange KiloEx (CRYPTO:KILO) has offered a $750,000 white hat bounty to the hacker responsible for exploiting $7.5 million from its platform.
The incident, which occurred on April 14, was attributed to a vulnerability in the platform’s price oracle system, allowing the attacker to manipulate asset prices and drain funds across multiple blockchain networks.
In a public statement on April 15, KiloEx confirmed the breach and disclosed wallet addresses linked to the hacker.
The exchange is actively monitoring these addresses and collaborating with law enforcement, cybersecurity firms, and blockchain networks to trace and recover the stolen assets.
The stolen funds were reportedly funneled through protocols like zkBridge and Meson, prompting KiloEx to work with these platforms to freeze transactions.
By altering the data, the hacker was able to inflate asset values by taking use of price oracles, a technique that feeds external asset price data into smart contract.
Security firm PeckShield reported that approximately $3.3 million was taken from Base, $3.1 million from opBNB, and $1 million from BSC tokens.
KiloEx has suspended all trading operations while investigating the breach.
The platform stated that it would treat the attack as a white hat exploit if the hacker returns 90% of the stolen funds.
"We will tweet about this resolution, acknowledging your cooperation and closing the case without further action," KiloEx wrote in its offer to the hacker.
If the hacker declines the bounty, KiloEx has vowed to escalate legal action and expose their identity.
"Your identity and activities will be exposed to relevant authorities. We will pursue legal action relentlessly," the exchange warned.
The breach has reignited concerns over security vulnerabilities in decentralised finance (DeFi) platforms, particularly those relying on oracles for critical data inputs.
KiloEx's native token also suffered a sharp decline of 27% following news of the attack.
At the time of reporting, the KiloEx (KILO) price was $0.03565.