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Binance boss Richard Teng has shared with the crypto community a post about the large contribution made by Binance in helping to retrieve the funds stolen by a hacker from the recently exploited price oracle mechanism at decentralized exchange KiloEx.
The platform was exploited two weeks ago, losing roughly $7.5 million worth of various cryptocurrencies. Binance has helped to block, trace and recover about 90% of those funds.
Binance helps to recover $6.1 million
Teng shared a link to an article published on the Binance website that revealed details of Binance’s participation in recovering the aforementioned crypto stolen by the hacker.
It says that the Binance security teams quickly stepped in, joining the collaboration put up by the crypto space to oppose that hacker attack.
The hacker chose as his target the oracle mechanism that brings off-chain data on crypto prices on-chain. The culprit funded a wallet on the DEX through Tornado Cash, thus obscuring the origin of the crypto deposit. What the hacker eventually did was abuse access controls by manipulating the oracle and making the system believe that a token’s price was much less than its real market value.
Hackers return 90% of stolen funds
After that, the hacker leveraged positions based on the artificially lowered prices. This allowed him to earn inflated profits and withdraw approximately $8.44 million worth of crypto. Before KiloEx realized what happened and began to act, the hacker repeated the same scheme on such networks as Base, Taiko and BNB Chain.
The exploit was flagged by the KiloEx community on April 15. Within half an hour, the security teams of Binance and BNB Chain made an emergency response. Those teams quickly spotted the blockchain addresses related to the exploit and blacklisted them. Then the Binance team got in touch with other key cross-chain bridge platforms, urging them to block the same wallets.
Meanwhile, KiloEx began negotiating with the exploiter and also filed a complaint with law enforcement. Eventually, the hacker agreed to return 90% of the stolen crypto in exchange for keeping 10% as a white-hack bounty, halting any further investigation and getting their wallets out of blacklists.
Vladislav Sopov
Dan Burgin