Following a KiloEx decentralized exchange cyber attack, Binance joined an initiative to recover vast amounts of stolen cryptocurrency assets. A vulnerability in KiloEx’s decentralized exchange price oracle functionality resulted in over $7.5 million of losses through a cyber attack.
According to Binance CEO Richard Teng, the exchange immediately reacted to the exploitation that damaged various blockchain networks. The cyberspace breach of April 15 enabled the hacker to achieve false market profits by manipulating token price estimates.
The hacker used the oracle to record prices artificially lower than the current market prices. The user created leveraged deals on Base, Taiko, and BNB Chain through this security flaw before withdrawing $8.44 million worth of cryptocurrencies.
Swift Blockchain Action Leads to Stolen Funds Recovery
Binance delivered its response to the security breach after the KiloEx community reported the attack. The platform units and BNB Chain technicians carried out tracking operations for blockchain addresses used during the attack before adding them to the block list.
Binance worked with cross-chain bridge platforms to establish measures to prevent stolen funds from moving through their networks. Through this united effort, the team managed to keep the impact in check and stop the attacker from accessing different networks to launder their assets.
The hacker returned 90% of stolen assets as KiloEx successfully negotiated with the attacker. Because of his ethical hacker status, the attacker received a 10% bonus from the stolen funds. Note that this accommodation came with one specific condition: termination of ongoing investigations into their wallet addresses and blocklisting the same addresses.
Through the combined operations, Binance verified that anti-fraud experts recovered $6.1 million worth of cryptocurrency assets. Binance declared ongoing dedication to security and its readiness to aid affected projects during comparable incidents.
Oracle security and rapid incident response abilities on decentralized systems are critical factors following this exploit incident. Binance took swift action alongside collaborations with fellow blockchain users, successfully minimizing financial losses and retrieving the most stolen crypto assets.
