KiloEx, a decentralized exchange (DEX), has suspended operations after suffering a $7 million loss due to a sophisticated attack on its price oracle system. The attacker exploited a vulnerability by manipulating asset prices across multiple blockchain networks including Base, BNB Chain, and Taiko, using Tornado Cash to obscure their transactions. This manipulation involved reporting artificially low prices for assets, enabling the attacker to secure leveraged positions that appeared profitable. KiloEx is currently collaborating with partners to trace the stolen funds and blacklist the attacker's wallet. Oracle manipulation is not new in decentralized finance (DeFi), with similar incidents affecting other platforms like Mango Markets and Cream Finance in previous years. Such vulnerabilities highlight ongoing security challenges in the DeFi sector, necessitating improved safeguards against exploitation.

Source 🔗