The KiloEX hacker behind a recent $7.5 million decentralized exchange (DEX) exploit has returned $5.5 million worth of stolen crypto. The return came after the KiloEX team offered a white hat bounty to incentivize the hacker to send back the funds.
The partial restitution marks a rare but increasingly common outcome in the DeFi space, where negotiation and incentives can play a key role in recovering stolen assets.
What Happened in the KiloEX Exploit?
On April 15, 2025, KiloEX, a decentralized perpetual exchange, was exploited for $7.5 million. According to blockchain security firm PeckShield, the attack likely stemmed from a price oracle manipulation vulnerability.
This allowed the KiloEX hacker to exploit the exchange’s smart contracts and drain funds from its trading vaults. As a result, KiloEX halted all trading operations and began working with law enforcement and security partners to track the stolen funds.
KiloEX’s Response: Bounty and Negotiation
In a proactive move, the KiloEX team offered the KiloEX hacker a 10% white hat bounty, amounting to $750,000, if they returned 90% of the stolen funds. Just days later, the KiloEX hacker returned around $5.5 million, or roughly 73% of the total amount.
While the full amount was not recovered, the development was still viewed as a win for the project and its users, as it helps reduce the overall losses and restore some community trust.
Investigation and Security Efforts
KiloEX brought in several blockchain security firms to assist in the investigation, including:
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Seal-911
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SlowMist
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Sherlock
These partners helped trace wallet activity and monitor fund movements across networks like BNB Chain and Manta Network. The KiloEX hacker was also observed using cross-chain bridges like zkBridge and Meson to obfuscate funds before the partial return.
KiloEx Exploit Price Breakdown
| Amount | Value | Description |
|---|---|---|
| Stolen Funds | $7.5 Million | Total value of funds stolen during the exploit. |
| Returned Funds | $5.5 Million | Amount returned by the hacker after the white hat bounty offer. |
| White Hat Bounty | $750,000 | KiloEx’s reward offer for the return of 90% of the stolen funds. |
What This Means for DeFi
The KiloEX hacker case highlights a major trend in decentralized finance: hackers are increasingly engaging in negotiations after high-profile exploits. Offering white hat bounties may not always work, but it does provide a non-confrontational path toward fund recovery.
It also shows the importance of:
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Strong oracle security
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Cross-chain monitoring
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Real-time incident response
For KiloEX, this is a chance to rebuild, resecure its platform, and regain user trust.
Final Thoughts
While the KiloEX hacker has yet to return the full $7.5 million, the $5.5 million recovered is a significant win in a world where many hacks end with zero restitution. This event reinforces the idea that open dialogue and smart incentives can turn even a damaging exploit into a partial recovery.
As DeFi matures, cases like the KiloEX hacker incident may shape how platforms design their security and incident response plans going forward.
Conclusion
The KiloEx exploit serves as a stark reminder of the vulnerabilities present in decentralized finance (DeFi) platforms, particularly around price oracle mechanisms. The KiloEX hacker‘s ability to manipulate the system and drain $7.5 million highlights the critical need for robust security measures in DeFi protocols.
However, the hacker’s decision to return $5.5 million after KiloEx’s offer of a white hat bounty shows that negotiation and incentivized actions can play a significant role in fund recovery.
While the full amount has not been recovered, the partial return marks a positive outcome in an otherwise damaging situation. KiloEx’s response, along with its collaboration with cybersecurity firms and law enforcement, showcases the proactive approach needed to mitigate future exploits.
Moving forward, this incident could set a precedent for how DeFi platforms manage security breaches and engage with hackers, potentially creating more opportunities for ethical resolutions and minimizing losses in the rapidly growing crypto space.
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FAQs
Who is the KiloEX hacker?
The identity of the KiloEX hacker is still unknown. The investigation is ongoing.
How much did the KiloEX hacker steal?
The hacker exploited the platform for $7.5 million.
How much has been returned?
Roughly $5.5 million in crypto assets has been returned.
What is KiloEX doing now?
KiloEX is working with cybersecurity firms and planning platform upgrades to prevent future attacks.
Is it common for DeFi hackers to return funds?
It’s becoming more common, especially when white hat bounties are offered.
Glossary
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DEX (Decentralized Exchange): A platform where users trade cryptocurrencies directly without an intermediary.
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Price Oracle: A tool that feeds off-chain data (like asset prices) into smart contracts.
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White Hat Hacker: An ethical hacker who helps find vulnerabilities or returns stolen funds in exchange for a bounty.
