Binance Recovers 90% of KiloEx Stolen Cryptocurrency

This decentralized exchange hit by one of the biggest hacks ever is KiloEx. Now, BINANCE intends to recover all the rest of the remains after successfully retrieving most of the funds stolen by hackers. The hacker was able to exploit a weakness within KiloEx’s price oracle in stealing over $7.5 million dollars worth of crypto. Response from Binance was quick enough to help trace and secure most of these stolen funds. Their quick action has seen about 90% of the recovered assets heading back to their rightful owners.

Most Stolen Funds Traced and Recovered by Binance

Therein lies the outlet of Binance CEO Richard Teng on X, connecting with the link to a detailed story about the event on the company’s site. So says the statement that in the wake of the hack, Binance’s security team traced and blocked the hacker’s wallets. Total efforts amounted to almost $6.1 million in recovery of stolen crypto.

Along with the wider crypto community and law enforcement, Binance responded within 30 minutes of the report of the exploit. Their team quickly flagged and blacklisted suspicious wallet addresses. They also coordinated with cross-chain bridge platforms to freeze the attacker’s assets.

What Happened In One of the Exploits

The hacker targeted KiloEx’s price oracle mechanism which brings off-chain pricing data on-chain. By funding a wallet through Tornado Cash, the attacker hid the source of funds and then plays with that oracle to understate market value of a token.

The hacker used this to open leveraged positions at artificially low prices, took the system to exploit it, and drained as much as $8.44 million across networks like Base, Taiko, and BNB Chain.

On April 15, KiloEx and its community flagged the issue. Soon after, security teams of Binance and BNB Chain launched emergency response.

Hacker Returns 90% as Bounty Deal

Dealing with KiloEx’s complaint and subsequent negotiations made the hacker agree to return 90% of the funds stolen, while keeping 10% as a white-hat bounty, avoiding legal processes, and removed from blacklist their wallets.

Conclusion

Thus, Binance’s great speed and cooperation with the broader crypto ecosystem proved crucial in recovering the stolen assets. Here is a case in which a concerted response in time was most critical in dealing with a situation with DeFi exploits-and thereby how centralized platforms may support decentralized ones during times of crisis.