The decentralized exchange KiloEX has revealed its resolution plans to compensate users following a $7.5 million attack this month.
Compensation Plans for Users
KiloEX announced tailored compensation plans for traders, Hybrid Vault stakers, and VIP users affected by the $7.5 million exploit that temporarily shut down the platform’s operations earlier in April. According to KiloEX, users whose positions remained open during the suspension will be compensated for the difference in increased losses or decreased profits. For instance, if the unrealized loss was $100 when the platform went offline, and increased to $200 upon resuming, users will be compensated the $100 difference.
Role of SlowMist in Fund Recovery
KiloEX collaborated with law enforcement and blockchain security specialists from SlowMist to track the hacker’s movements in an attempt to recover the stolen funds. SlowMist provided KiloEX with comprehensive on-chain analysis of the attack, clarifying the vulnerability’s root cause and supporting multiple rounds of negotiations between KiloEX and the attacker. On April 15, KiloEX proposed to offer 10% of the stolen amount for a return of 90%, however, later it decided to drop all legal actions against the hacker while still rewarding them with the promised white hat bounty.
Platform Operations Resumption
On April 23, KiloEX announced plans to gradually resume trading and deposit functions on the platform starting April 24. Full platform functionality is expected to be restored by 13:00 UTC. The platform assured users that the vulnerability that led to the hack has been quickly fixed, which is essential to prevent further exploitation and secure the platform for future operations.
KiloEX's compensation plans and collaboration with SlowMist may help rectify the situation following the attack, restoring user trust.
