On April 15, 2025, decentralized exchange KiloEx fell victim to a complex price manipulation exploit.
A hacker used Tornado Cash to fund wallets, manipulated KiloEx’s price oracle, and opened leveraged positions using artificially low token values. This allowed the attacker to withdraw inflated profits across Base, BNB Chain, and Taiko, draining approximately $8.44 million in crypto.
The KiloEx community flagged the exploit at 19:00 UTC. Within 30 minutes, Binance and BNB Chain security teams activated an emergency response, coordinating with KiloEx to assess the breach and identify vulnerabilities. Their analysis pinpointed the compromised oracle system as the root cause.
Cross-Chain Containment and Fund Recovery
Binance quickly blacklisted related wallet addresses to block the outflow of stolen assets. The BNB Chain team also coordinated with cross-chain bridge providers to halt the attacker’s access. Using internal and open-source forensic tools, Binance traced the attacker’s movements and supported law enforcement involvement.
KiloEx engaged the attacker through on-chain messages, guided by Binance’s security experts. After a brief negotiation period, the attacker agreed to return 90% of the stolen funds in exchange for a 10% white-hat bounty and immunity from further legal pursuit. This returned $6.1 million to KiloEx users.
A Warning and a Win for Web3 Security
This incident highlights the importance of rapid, cooperative security responses in decentralized finance. Binance reaffirmed its commitment to defending the crypto ecosystem, pledging ongoing improvements to threat detection, coordination, and user protection.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/binance-recovers-6-1m-in-kiloex-oracle-exploit-response/