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Decentralized exchange KiloEx has announced a comprehensive compensation plan for users affected by a $7.5 million hack that temporarily halted its operations earlier this month. The platform aims to restore trust and support for its traders and stakers following the exploit.
Key Takeaways
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KiloEx will fully compensate traders for losses incurred during the platform's suspension.
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Stakers in the Hybrid Vault will receive an additional 10% annual percentage yield (APY).
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The hacker returned the stolen funds after being offered a bounty.
Overview of the Incident
On April 14, KiloEx experienced a significant security breach due to a price oracle vulnerability, which allowed the attacker to manipulate asset prices and exploit the platform for $7.5 million. Following the incident, KiloEx suspended its operations to address the breach and secure its systems.
Compensation Details
In an announcement made on April 24, KiloEx outlined its compensation strategy:
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Traders: Users who had open positions during the suspension will receive full compensation for any losses incurred or profits decreased. KiloEx emphasized the importance of closing positions promptly once operations resume, as delays could affect the compensation amount.
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Stakers: For those who participated in the Hybrid Vault, KiloEx confirmed that the stolen funds have been fully reintegrated into the vault. As a gesture of goodwill, the platform will provide an additional 10% APY to eligible stakers who had funds in the vault before the platform resumed operations.
Hacker's Return of Funds
In a surprising turn of events, the hacker returned the stolen funds after KiloEx offered a 10% bounty, allowing them to keep $750,000. Initially, KiloEx threatened legal action against the hacker but later decided to drop all legal proceedings once the funds were returned. This decision was made to encourage ethical behavior in the crypto community and to promote a white-hat hacking approach.
Security Measures and Future Steps
KiloEx has taken significant steps to enhance its security following the breach. The platform collaborated with blockchain security experts to analyze the attack and implement necessary fixes to prevent future incidents. A detailed post-mortem report has been released, outlining the vulnerabilities exploited and the measures taken to secure the platform.
Sources
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DeFi platform KiloEx to compensate users impacted by $7.5M hack, Cointelegraph.
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DeFi Platform KiloEx Announces User Repayments After $7.5M Exploit, TronWeekly.
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KiloEX commits to compensating users following $7M Price Oracle exploit, Mitrade.
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DeFi platform KiloEx to compensate users impacted by $7.5M hack, StartupNews.fyi.
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