The post KiloEx Suffers $7 Million DeFi Hack Across BNB, Base, and Taiko Chains appeared first on Coinpedia Fintech News
Yet another hack story shook investors’ faith in Defi. The DeFi world is once again in the spotlight after a newly launched perpetual trading platform, KiloEx, backed by YZi Labs (previously known as Binance Labs), fell victim to a multi-chain exploit that drained approximately $7 million. The attack has exposed fresh concerns about the security of cross-chain trading platforms.
Hack Spans BNB, Base, and Taiko Chains
The exploit began on April 14 and affected multiple networks: BNB Smart Chain, Base, and Taiko. According to blockchain security firm Cyvers reports, the attacker utilized a wallet funded via Tornado Cash to carry out a series of strategic transactions. These transactions exploited a price oracle vulnerability, allowing the hacker to manipulate asset pricing across chains and siphon funds in rapid succession.
KiloEx Suspends Operations
The launch had been off to a promising start. KiloEx, backed by big names like Binance Wallet and PancakeSwap, had just held its Token Generation Event on March 27 and quickly grabbed attention in the DeFi space. But that early momentum was disrupted by the sudden exploit.
As a result, the team was forced to pause all platform activity while they dug into what went wrong. To help with the investigation, they’re now working on a bug bounty program with the hope that ethical hackers can step in, trace the stolen funds, and identify the exact weakness that allowed the attack to happen.
Crypto Impact
The incident had an immediate impact on investor sentiment. The KILO token crashed by 30%, wiping out $3.5 million in market cap within hours. From a previous valuation of $11 million, the token’s market cap now sits at $7.5 million, highlighting the fragility of newly launched DeFi tokens in the wake of security breaches.
Ongoing Threat and Response Efforts
Meanwhile, security teams are still keeping a close eye on the attacker’s wallet, as the exploit hasn’t been fully shut down yet. KiloEx hasn’t officially confirmed that the issue is resolved, and there are worries that stablecoins like USDC used during the hack could end up being blacklisted.
This whole situation highlights how important strong access controls are, especially for DeFi platforms working across several blockchains. As the investigation continues, all eyes are on how KiloEx responds. Their next moves will likely decide if they bounce back or end up as yet another warning sign in the world of decentralized finance.