kiloEx Recovers $7.5M in Crypto Hack Recovery Using 10% Bounty Program

Can offering a bounty to a hacker really work? kiloEx’s recent success suggests it can. The decentralized exchange platform managed to recover a staggering $7.5 million stolen due to a price oracle vulnerability, proving that sometimes a well-placed carrot can outshine the stick.

• $7.5 million recovered
• 10% bounty offered
• Price oracle vulnerability exploited
• No legal action taken

On April 18, 2025, kiloEx announced the triumphant recovery of the funds, which had been pilfered through a vulnerability in its price oracle system. This exploit was first flagged by the blockchain security firm Cyvers on April 14, 2025, and affected the BNB, Base, and Taiko chains. A price oracle is a system that provides price data to a blockchain, crucial for decentralized finance (DeFi) platforms. In this case, the attacker manipulated the oracle to report false asset prices, a tactic seen in previous attacks on platforms like Mango Markets and Cream Finance.

The attacker had used the crypto-mixing service Tornado Cash to fund the wallet involved in the exploit. Crypto-mixing services like Tornado Cash are used to obscure transaction trails, making it difficult to trace funds. Rather than engaging in a potentially endless legal battle, kiloEx decided to offer a 10% bounty, amounting to $750,000, in exchange for the return of 90% of the stolen funds. This innovative approach not only solved kiloEx’s immediate problem but also signaled a shift in how the industry might address security breaches.

This creative resolution stands in contrast to the broader landscape of the crypto industry, which has seen around $2 billion lost to hacks and exploits in 2025 alone. By offering a bounty, kiloEx not only got its funds back but also set a precedent for how other platforms might handle similar situations in the future. This move highlights the potential effectiveness of incentivizing white-hat hackers, those who ethically find and report vulnerabilities, to return stolen funds rather than pursuing costly and often fruitless legal action. Learn more about crypto hack recovery strategies.

Yu Xian, the founder of cybersecurity firm Slowmist, commented on the incident, stating:

“Choosing to act as a white-hat hacker and claim a bounty might truly be the best solution in this industry. Of course, this process isn’t easy, with too many points requiring negotiation, and if not handled well, it can spiral out of control.”

His words underscore the complexity and potential benefits of such resolutions. The involvement of firms like Seal-911, SlowMist, and Sherlock in the investigation highlights the collaborative effort required to address such incidents, showcasing the industry’s response to security threats. The impact of bounty programs on crypto security cannot be overstated.

kiloEx’s approach aligns perfectly with the principles of decentralization and community that underpin the crypto world. By prioritizing collaboration over litigation, kiloEx not only recovered its funds but also strengthened its ties with the ethical hacking community. This incident serves as a powerful reminder that in the world of cryptocurrency, where the recent disbanding of the DOJ’s National Cryptocurrency Enforcement Team has left a regulatory void, private sector initiatives like kiloEx’s bounty program can play a crucial role in combating crypto crime.

While Bitcoin remains the cornerstone of this financial revolution, other cryptocurrencies and blockchain technologies play vital roles in filling niches that Bitcoin might not serve as effectively. kiloEx’s story is a testament to how the broader crypto ecosystem can work together to overcome challenges and push the industry forward. From Ethereum’s smart contract capabilities to the unique offerings of other blockchains, each contributes to the resilience and innovation of decentralized finance. For more information on kiloEx’s recovery, check out the kiloEx crypto hack recovery wiki.

However, offering bounties isn’t without its risks. It could potentially encourage more attacks if hackers see it as a guaranteed payout. Additionally, if not managed carefully, this approach might become the norm, leading to a culture where hacking is seen as a lucrative side hustle. Yet, kiloEx’s success suggests that when handled correctly, bounties can be a powerful tool for recovery and security enhancement. Learn more about the risks and considerations of such vulnerabilities at price oracle vulnerability in crypto hacks.

Key Questions and Takeaways

• What was the total amount of funds kiloEx recovered?

  kiloEx recovered $7.5 million.

• How did kiloEx manage to recover the stolen funds?

  They offered the attacker a 10% bounty, which incentivized the return of the funds.

• What was the vulnerability exploited in the kiloEx hack?

  The vulnerability was in kiloEx’s price oracle, which allowed the attacker to manipulate prices across multiple blockchain networks.

• What action did kiloEx take regarding legal proceedings against the attacker?

  kiloEx chose not to pursue legal action, focusing instead on fostering collaboration with the ethical hacking community.

• How does this incident compare to the broader context of crypto hacks in 2025?

  This incident is notable within an industry that lost around $2 billion to hacks and exploits in 2025, as it represents a successful recovery through a bounty program rather than litigation.

• What did Yu Xian of Slowmist comment about this incident?

  Yu Xian highlighted the rarity and potential benefits of offering bounties to white-hat hackers, noting the complexity and risks involved in such negotiations.