KiloEx Plans Compensation for Users Hit by $7.5M Exploit | Coinspeaker

Key Notes

• KiloEx will reimburse users for losses caused by the $7.5M exploit.
• Traders will receive compensation for missed profits or increased losses.
• Stakers and VIP users will gain bonus rewards and upgraded benefits.

KiloEx, a decentralized exchange, recently suffered a breach resulting in a $7.5 million loss, which was partially recovered days later. Following the incident, the DEX announced plans to compensate users affected by both the exploit and the temporary suspension of trading activities.

In a Medium post published on April 24, KiloEx disclosed that it has created compensation plans for its users including traders, Hybrid Vault stakers, and VIP users. Users whose positions remained open during the platform suspension will be compensated for the difference in the increased losses or decreased profits, KiloEX said on Thursday.

Payouts will only cover losses incurred up to the point when KiloEx resumes trading, so users have been advised to close their positions as soon as possible.

Traders’ Compensation

KiloEx stated that traders’ limit orders will be canceled, while take-profit and stop-loss orders will be processed as usual. Open positions from before the suspension will remain active once the DEX resumes operations.

The exchange also announced on its X profile that it will be returning soon, following a thorough security audit. However, no specific date for the resumption has been announced yet.

After successfully recovering the stolen funds, KiloEx announced that Hybrid Vault stakers will regain access to their principal and earnings once operations resume. The exchange also plans to launch a Special Yield Boost Campaign, offering users an additional 10% APY on top of the base platform yield.

KiloEx VIP Users

KiloEx announced that VIP user status will be determined based on a real-time snapshot taken at the time of the security breach. Eligible VIP users will receive a 30-day status protection period, and all VIP tiers, except VIP7, will be upgraded by one level.

This announcement comes after KiloEx lost $7.5 million to a breach and recovered the amount after stating that it would offer a 10% bounty to the hacker.

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