KiloEx, a Perpetual Trading Platform Backed by YZi Labs (formerly Binance Labs), Has Been Exploited for $7 Million

Cyvers analysts report that the attacker used a Tornado Cash-funded address to execute a series of coordinated transactions.

KiloEx, a startup perpetual trading platform backed by YZi Labs (formerly known as Binance Labs), has suffered a cross-chain exploit, resulting in the theft of approximately $7 million.

The incident began on April 14 with hackers exploiting potential flaws in KiloEx’s price oracle system, granting them opportunistic access to manipulate critical data feeds.

This exploit was used to siphon funds from KiloEx’s mainnet v2 deployment across BNB Smart Chain, Base, and Taiko networks.

Hackers Used Tornado Cash-Funded Address

Cyvers' analysts noted that the attacker used an address funded by Tornado Cash to carry out a series of coordinated transactions.

On-chain evidence reveals rapid fund movements across multiple chains, highlighting the interconnected nature of DeFi and the ease with which vulnerabilities in one protocol can be used to cascade attacks across different ecosystems.

The project, which launched its Token Generation Event (TGE) on March 27 in partnership with Binance Wallet and PancakeSwap, is currently listed on Binance Alpha.

“Root cause was a potential price oracle access control vulnerability. The attacker is still actively exploiting the system, and USDC may be subject to blacklisting,” wrote Cyvers.

The project was incubated by YZi Labs, an investment and innovation division focused on blockchain startups. Previously branded as Binance Labs, YZi Labs has a portfolio of over 100 projects across various blockchain ecosystems.

The launch of KiloEx drew significant attention due to its backing and integration with BNB Smart Chain, a leading blockchain ecosystem known for its high throughput and low transaction fees.

In response to the incident, KiloEx has suspended its platform and is collaborating closely with renowned security partners—including Seal-911, SlowMist, and Sherlock—to conduct a comprehensive investigation and identify the perpetrators.

The team is also working tirelessly with relevant exchanges and protocols to track the stolen assets and facilitate their recovery. Furthermore, KiloEx plans to launch a bounty program to encourage white hat hackers to assist in securing the platform and recovering user assets.

“We are actively collaborating with BNB Chain, Manta Network, and leading blockchain security partners—including Seal-911, SlowMist, and Sherlock—to investigate the recent KiloEx Vault exploit and trace the stolen assets,” the statement reads.

Our joint efforts are focused on mitigating the impact of the exploit, identifying the root cause of the vulnerability, and bringing those responsible to justice.

We are committed to providing regular updates to the community throughout this process.

In the meantime, we urge everyone to remain vigilant and prioritize online safety practices. Together, we can create a safer and more secure blockchain ecosystem for all.

The incident has sparked sharp reactions in the market, with KILO token plummeting by 30%. Its market capitalization dropped from $11 million to $7.5 million within hours of the attack.

As the dust settles, security teams are closely monitoring the attacker’s wallet addresses:

* ATOM:8888888888888888888888888888888888888888888888888A8A7696

* ATOM:8888888888888888888888888888888888888888888888888A8A7687

* BASE:0x90C94060eA68A36A9902220A6A2686A3A98e6496

The situation remains fluid as remediation efforts continue and the vulnerability is further assessed.