By Key Points
- KiloEx confirms plans to reimburse users after $7M hack
- Compensation to cover traders, stakers, and VIPs
- SlowMist helped recover $8.44M through on-chain messaging
- Despite recovery, KILO token price drops over 5%
KiloEx, the decentralized exchange incubated by YZi Labs, is making a calculated comeback just weeks after a major hack forced it offline. The platform is gearing up to resume operations following a full security audit by leading blockchain security firm SlowMist, and a strategic compensation plan for affected users is already underway.
Even with strong efforts to rebuild trust, KILO, the platform’s native token, has dropped more than 5% in the past 24 hours. As of writing, KILO is trading at $0.0425 according to CoinGecko.
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.
Read the article for the details.
🧷https://t.co/cCdAL17mir pic.twitter.com/yvwty7WUjH
— KiloEx (@KiloEx_perp) April 24, 2025
KiloEx laid out its user reimbursement strategy across three main groups:
Traders
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Limit orders will be canceled, while stop-loss orders remain active.
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Open positions from the downtime will stay active post-resumption.
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Compensation will be calculated based on the platform’s restart time.
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KiloEx urges traders to close their positions promptly after the relaunch to avoid losses from price changes that won’t be covered.
Hybrid Vault Stakers
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Recovered funds were re-injected into the vault, keeping users’ principal and yield intact.
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A Special Yield Boost Campaign will reward eligible stakers with an extra 10% APY, paid in USDT.
VIP Users
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VIP users will receive a +1 level upgrade, with the exception of VIP7 members.
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All affected users, including VIP7, will benefit from a 30-day VIP status protection period.
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Status tiers were assigned using a real-time snapshot from the day of the hack.
This multi-tiered plan is aimed at not only compensating users fairly but also encouraging them to stick with the platform as it rebuilds.
KiloEx is coming back!
Following a thorough security audit by @SlowMist_Team, we are officially resuming soon.
📄 Audit link: https://t.co/2fwXTDPiQj
Thank you for your patience. Let’s move forward, stronger than ever. pic.twitter.com/Xokjh2prcb
— KiloEx (@KiloEx_perp) April 24, 2025
Blockchain messaging and bounty campaigns help recover $8.44M
Post-hack, KiloEx joined forces with SlowMist to track down and recover stolen assets. One key technique they used? On-chain messaging. This innovative communication method helped the team open a dialogue with the attacker, ultimately recovering $8.44 million worth of crypto.
In addition to the audit, KiloEx rolled out a bounty program—similar to tactics used by other platforms like those in the recent Zksync vulnerability reports. The goal: incentivize whitehat hackers to identify weaknesses before malicious actors can exploit them.
📢New Guide Alert! ✍️
On-chain messaging has become a crucial communication tool in the blockchain world, especially in security incidents. Recently, SlowMist helped KiloEx communicate with the attacker via on-chain messages, leading to the recovery of $8.44M in stolen funds.… pic.twitter.com/43Ar7KEFVi
— SlowMist (@SlowMist_Team) April 23, 2025
SlowMist has verified that no critical vulnerabilities remain, clearing the path for a secure restart of KiloEx operations.
This approach highlights the growing importance of blockchain-native tools like on-chain communication and bounty programs in maintaining the integrity of decentralized platforms.
KiloEx (KILO) price performance. Source: TradingView – Techtoken
Market still uncertain despite KiloEx recovery plans
Despite the security overhaul and user compensation measures, investor sentiment remains cautious. The KILO token has struggled to recover, signaling a gap between technical fixes and community trust.
This type of price reaction isn’t new. Even when macroeconomic factors shift or regulatory narratives evolve, like in Bitcoin’s surge following Fed-related remarks or the approval of XRP futures on Coinbase, price movement still hinges on user confidence.
KiloEx’s situation mirrors a broader theme in crypto: security incidents are no longer just technical setbacks—they’re reputational challenges. Rebuilding trust takes time, transparency, and community-first initiatives. The DEX might take cues from structured recovery roadmaps used by platforms managing crypto investment funds or regulatory reshuffles such as the Paul Atkins SEC appointment case.
As the platform resumes operations, all eyes will be on whether KiloEx can not only secure its system—but win back its users.
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