Johann Wilfred
Decentralized platform KiloEx announced in an X post on Thursday that it will compensate all traders who had open positions during the time the platform was suspended.
Users are encouraged to close their positions on the platform as soon as possible after the platform resumes, according to KiloEx’s article on Medium. Users will not be affected by unrealized losses and will receive unrealized gains, as any possible action to resolve their trading positions was cut off by the suspension.
On the 15th of April, KiloEx was hit by a $7 million hack that left multiple investors with deficits, prompting a suspension of all platform operations. The DEX offered the hackers 10% of the total funds stolen if they returned 90%.
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The hacker exploited a weakness in KiloEX’s system, managing to open a position at a low price and then close it again at a higher price. This allowed the hacker to make a profit.
Along with promising a reward, KiloEx also threatened to expose the hacker and take legal action if the funds were not returned. On the 18th of April, the hacker returned all stolen funds, after which KiloEx said it would not pursue any legal action against the individual.
