A $7M cyberattack on KiloEx has left users with significant losses, but the platform is providing compensation to those affected. Here’s what you need to know.
KiloEx to Compensate Users Impacted by $7M Attack
Users whose positions remained open during the platform suspension will be compensated for the difference on increased losses or decreased profits.
KiloEx user compensation refers to the financial incentives provided by the platform to its users for participating in various activities.
These may include trading, staking, or other interactions with the platform.
The compensation is usually paid in the form of the platform's native token or other cryptocurrencies.
KiloEx aims to reward its users for their engagement and loyalty, promoting a healthy and active community.
The KiloEx attacker appeared to exploit a vulnerability in the platform’s price oracle system. The attack resulted in significant losses for users, with an estimated $7 million being stolen.
A cyberattack is a deliberate attempt to access, disrupt, or destroy computer systems, networks, or sensitive data.
These attacks can be launched through various means, including phishing, malware, and network exploitation.
According to the IBM X-Force Threat Intelligence Quarterly report, there were over 4,000 detected threats per minute in 2020.
Cyberattacks can have severe consequences, including financial losses, data breaches, and reputational damage.
The average cost of a data breach is $3.86 million, as reported by IBM.
Resolution Plans and Compensation
KiloEx has revealed its resolution plans for affected users. According to the platform, compensation will be provided to users whose positions remained open during the platform suspension. This compensation will be calculated based on the difference between increased losses or decreased profits up to the point the platform resumes operation.
Users are advised to close their positions as soon as possible after the platform resumes to minimize potential losses. Compensation will only be offered until this point, so it is essential for users to take prompt action.
Attack Details and Investigation
The KiloEx attacker used a wallet funded by crypto laundering service Tornado Cash to exploit the vulnerability in the platform’s price oracle system. An investigation into the attack is ongoing, with the goal of identifying the perpetrator and preventing similar incidents in the future.
- coindesk.com | KiloEx to Compensate Users Impacted by $7M Attack
