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KiloEx is making strides to recover from a recent $7 million hacking incident by offering compensation to affected users, demonstrating its commitment to security and user trust.
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Despite successfully initiating recovery plans and engaging in security audits, KiloEx’s native token, KILO, experienced a notable decline of over 5%, reflecting ongoing market volatility.
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In a statement, SlowMist emphasized its critical role in the recovery process, stating, “We helped KiloEx communicate with the attacker via on-chain messages, leading to the recovery of $8.44 million in stolen funds.”
KiloEx outlines compensation plans for hacking victims while navigating market challenges, with its native token $KILO declining despite recovery efforts.
How KiloEx Will Compensate Victims of $7 Million Hack
The YZi Labs-backed decentralized exchange (DEX) revealed the news in a post on X (Twitter), detailing its comprehensive compensation plans for affected users.
“Due to the security incident on April 14, 2025, where KiloEx was exploited by a hacker, some user activities were affected. We are now announcing resolution plans for traders, Hybrid Vault stakers, and VIP users,” wrote the DEX.
In a follow-up Medium post, KiloEx provided clear instructions for the different user cohorts affected by the incident.
- Instructions for KiloEx Traders
Traders’ limit orders will be canceled while taking profit, and stop losses will be executed as normal. Those traders whose positions remained open during the platform suspension will be allowed to continue after KiloEx resumes operations. Yet, those whose losses increased or profits decreased during this period will be fully compensated for the difference.
“Please close your position as soon as possible after the platform resumes,” KiloEx advised.
This directive comes as the DEX will calculate compensation based on the platform’s resume time. Accordingly, traders who delay closing their positions could incur differences between their actual profit and loss (PnL) and the compensation amount.
- Instructions for Hybrid Vault Stakers on KiloEx
For Hybrid Vault Stakers, their principal and earnings during the suspension period remain unaffected. The platform has successfully recovered and fully reinjected all stolen funds into the Hybrid Vault.
Nevertheless, KiloEx plans to incentivize this group of users through a Special Yield Boost Campaign upon resuming operations.
“Users will receive an additional 10% APY on top of the base platform yield. The bonus yield will be paid out in USDT,” stated the Medium post.
- Instructions for KiloEx VIP Users
Victims of KiloEx’s recent hack, specifically VIP users, will be granted a one-level upgrade, excluding those classified as VIP7. However, all affected users, including VIP7, will receive a 30-day VIP status protection period.
Notably, the VIP status was determined based on a real-time snapshot taken at the time of the KiloEx security incident.
KiloEx Details Resumption Plans After Audits and Consultation
COINOTAG reported that KiloEx decided to suspend its platform following the cyberattack, actively collaborating with security partners to investigate the breach and trace the stolen funds.
Similar to the Zksync incident, the platform also initiated a bounty program to encourage whitehat assistance in recovering user assets. Following thorough diligence and security audits, KiloEx is poised for its operational comeback.
“KiloEx is coming back! Following a thorough security audit by SlowMist, we are officially resuming soon,” the DEX announced.
Blockchain security firm SlowMist validated this report, elaborating on its involvement in managing the KiloEx incident.
“Recently, SlowMist helped KiloEx communicate with the attacker via on-chain messages, leading to the recovery of $8.44 million in stolen funds,” detailed SlowMist.
Moreover, the security firm underscored the importance of on-chain messaging in the recovery process, highlighting its role in facilitating critical communications during security incidents.
Despite positive news regarding its resumption and compensation, KiloEx’s native token, KILO, experienced a decline of over 5%. As of this writing, it was trading at $0.0425 according to CoinGecko.
Additionally, it should be noted that YZi Labs (formerly Binance Labs) was responsible for incubating KiloEx. The DEX successfully launched its token generation event (TGE) on March 27 in partnership with Binance Wallet and PancakeSwap.
Conclusion
KiloEx’s proactive approach to compensating hacking victims showcases its dedication to security and user trust. As it prepares to resume operations, ongoing market conditions will be critical in determining the future trajectory of its token and overall platform stability.
