- KiloEx Offers 10% Bounty to Hacker After $7.5M Theft in Blockchain Attack
- KiloEx Works with Law Enforcement to Track Hacker and Freeze Stolen Assets
In a significant development, decentralized exchange (DEX) KiloEx made a significant announcement. The platform offered a 10% white hat bounty to the hacker who stole $7.5 million in cryptocurrency from its system. The attack required the hacker to take advantage of multiple interconnected blockchains in KiloEx’s platform. KiloEx proposed a $750,000 payment in return for their clients to recover 90% of stolen operational assets.
KiloEx Offers Hacker 90% Recovery Deal for Stolen Funds
The cooperation of KiloEx with law enforcement, together with cybersecurity agencies and multiple exchanges led to this offer. The stolen wallet addresses involved in the hacker’s activities were disclosed by KiloEx. The addresses are currently tracked by KiloEx while other organizations maintain monitoring as well. The company states to its clients it stands ready to freeze any stolen funds that might be necessary.
The perpetural trading platform of KiloEx experienced the attack which affected the BNB, Base, and Taiko blockchains. The hacker transferred money through Tornado Cash which functions as a cryptocurrency service for hiding the sources of funds. Due to the security breach an amount of $7.5 million was taken from the system. The incident remains active so KiloEx performs ongoing investigations to determine the extent of the security breach.
KiloEx established the terms that the hacker must return 90% of the stolen funds while the remaining 10% would represent a white hat bounty payment. The hacker received a 72-hour period from the company to fulfill their demands for cooperation. KiloEx committed to publicly salute the cooperating hacker through a tweet that would acknowledge their assistance in case they accepted the terms of the deal. The return of stolen funds would let the case terminate its progression.
The hacker faced escalation of the investigation when they did not follow KiloEx’s demands. Company operations with law enforcement and cybersecurity specialists would commence to find the hacker in this situation. The revelation of the hacker’s information and activities would be shared with authorities during this type of situation. KiloEx declared relentless pursuit of legal action against hackers in case they did not comply.
KiloEx Threatens Legal Action If Hacker Fails to Return Stolen Funds
The platform implemented procedures to establish what caused the breach to happen. KiloEx conducted verification to determine that the vulnerability existed in the price oracle feature of its system. The platform stopped its operations right after detecting the security breach. KiloEx began cooperating with blockchain security firms and other networks, such as BNB Chain and Manta Network, to address the issue. The company requested other platforms to block the wallet belonging to the hacker which would stop future theft attempts.
The company proves its commitment to dealing with this problem by creating a white hat bounty program which avoids extreme measures. The company KiloEx attempts to keep a cooperative relationship with the hacker to prevent an extended court fight. The company continues reaching out to the hacker through negotiations, intending to establish both their cooperation and restoration of the stolen assets.
The KiloEx team stated that their investigative support received backing from law enforcement organizations as well as cybersecurity agencies together with exchanges. The cooperation between parties enabled personnel to reveal key details about the hacker’s operations. The cybersecurity team tracks all addresses which belong to the hacker. KiloEx holds the ability to immediately freeze the stolen funds whenever the hacker fails to return the money.
Besides the ongoing tension KiloEx has chosen to preserve open communication. The hacker faces an opportunity to settle the matter peacefully to prevent future negative results. However, KiloEx will also seek legal recourse against the hacker unless they comply with their demands. KiloEx provides a chance for the hacker to repair the situation although time continues to run out.
