Binance Recovers $6.1M from KiloEx Hack, 90% of Stolen Crypto Returned

Binance CEO Richard Teng announced a major recovery effort following the $7.5 million hack of decentralized exchange KiloEx. The exploit targeted KiloEx’s price oracle mechanism, allowing a hacker to manipulate token values and siphon off millions across multiple networks including Base, Taiko, and BNB Chain.

The attacker used Tornado Cash to fund a wallet, masking the origin of the crypto. By exploiting access controls in the oracle system, the hacker artificially lowered token prices, opening leveraged positions and extracting inflated profits. In total, the attacker withdrew approximately $8.44 million before the exploit was detected by the KiloEx community on April 15.

Binance and BNB Chain security teams responded within 30 minutes, identifying and blacklisting the hacker's wallets. Binance also coordinated with cross-chain bridge platforms to block transactions tied to the exploit. These swift actions played a crucial role in containing the damage and pressuring the hacker.

Following negotiations and a complaint filed by KiloEx with law enforcement, the hacker agreed to return 90% of the stolen funds in exchange for keeping 10% as a white-hat bounty. This deal included stopping any further legal action and removing wallet blacklists.

Binance’s involvement, including tracking and freezing suspicious assets, led to the successful recovery of $6.1 million in stolen crypto. The incident underscores the growing need for robust on-chain security and collaboration between exchanges, protocols, and communities to mitigate future exploits.

The recovery effort showcases Binance’s commitment to safeguarding the crypto ecosystem and reaffirms its leading role in post-attack intervention. As DeFi platforms continue to evolve, strong security coordination remains essential in protecting user assets and maintaining trust.