KiloEx, a decentralized exchange (DEX) that recently suffered a security breach has reclaimed $5.5 million of the stolen funds. In a statement released on Friday, the DEX confirmed that the hacker had returned the stolen funds.
Popular blockchain security firm, PeckShieldAlert first relayed the development before KiloEx made a statement to confirm the reclaim of the assets. Peckshield reported that the hacker sent $5.5 million to the DEX.Â
According to a statement by the DEX, the development underlines the commitment of the platform to ensuring the safety of users’ assets and a secure ecosystem. KiloEx revealed that it will fulfill its promises to drop the lawsuit against the hacker by consulting some of its partners.
KiloEX vowed to keep community members informed about the process of closing the case for more transparency. Additionally, the DEX promises to fulfill its pledge of giving the hacker about 10% of the recovered assets.
The decentralized exchange emphasized that allowing the attacker to keep part of the funds illustrates its importance in enhancing the security of the platform. Lastly, KiloEx said it remains committed to keep a long-term relationship with blockchain security firms and white hat hackers, while regarding the latest resolution as a cornerstone of their partnership.
Recall that on Monday, Binbits reported that KiloEx offered 10% of the $7.4 million stolen by a hacker that manipulated the platform’s price oracle access to orchestrate the attack.
How the hack on KiloEx emphasized the need for white hat hackers in the sector
Meanwhile, the return of the stolen funds is a surprising turn of events considering how hackers mostly make way with their loot despite pleas from their victims. This situation emphasized the need for white-hat hackers to further enhance the security of the sector.
Before now, there were only a few cases where the hacker returned loot. One of the most recent cases is the return of all stolen assets from the $62 million hack on Munchables, a web3 protocol on the Blast network. However, reports suggest that the hack on Munchables is an insider work that employed a North Korean hacker to instigate a fake hack.
Similarly, in September 2023, HTX, a relationship renowned cryptocurrency exchange, lost more than $7.9 million worth of ETH to a cyber attack. With the intervention of the exchange’s advisor, Justin Sun, who urged the hacker to give up the funds to receive a 5% bounty. Consequently, the hacker heeded the call, returning the stolen funds, and eventually claimed the offer.
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