Binance’s Role in Fund Recovery
Richard Teng, the CEO of Binance, recently addressed the cryptocurrency community to highlight the significant role his company played in the recovery of funds stolen in a recent attack targeting the price oracle system of the decentralized exchange KiloEx.
This incident, which occurred two weeks ago, resulted in the loss of approximately $7.5 million in various digital assets. In a collaborative effort that involved both ecosystem members and law enforcement, Binance succeeded in tracing and reclaiming around 90% of the stolen funds.
Details of the Hack
Teng shared insights on this matter through an article on Binance’s official site, detailing how their security teams acted swiftly as part of a broader response to this hacking incident.
They managed to block and trace $6.1 million that had been funneled through various channels following the exploit. The hack was orchestrated by malicious actors who manipulated the price oracle, which provides off-chain data for cryptocurrencies within KiloEx, effectively lowering the perceived market value of assets.
Exploitation Tactics Used
By using Tornado Cash, the hacker disguised the origins of their cryptocurrency deposits and exploited vulnerabilities in the KiloEx system. Subsequently, they executed trades based on these artificially depressed prices, resulting in illicit profits totaling about $8.44 million.
Collaborative Response
The situation escalated quickly, and by April 15—only half an hour after the exploit was reported by the KiloEx community—security teams from both Binance and BNB Chain had mounted a rapid response, identifying the blockchain addresses connected to the breach and placing them on a blacklist. In tandem, KiloEx reached out to law enforcement and engaged in discussions with the hacker.
Resolution of the Incident
Ultimately, the attacker conceded to returning 90% of the stolen assets, retaining a small fraction as a white-hat bounty, which also enabled them to avoid further investigations and to have their wallets removed from the blacklist.
This incident emphasizes the importance of collaboration within the cryptocurrency ecosystem, particularly when addressing security breaches and protecting users’ assets.
