The crypto exchange platform KiloEX has abruptly halted all operations following a significant exploit that resulted in a loss of approximately $7.5 million. The exploit exploited a price oracle vulnerability, leading to financial turmoil for users and raising concerns about security vulnerabilities within decentralized exchanges (DEXs). KiloEX‘s suspension highlights the potential impact of such attacks on user confidence and market stability. PeckShield**, a cybersecurity firm, has confirmed that this was due to a price oracle vulnerability, highlighting how easily these vulnerabilities can be exploited, and how this simple flaw led to large-scale financial losses. The incident has sparked concerns about the security of DeFi platforms, as the native KILO token saw its value plummet by 30%, wiping out $7.5 million from its market capitalization, leading to liquidity issues on networks like Base and Taiko, further impacting stablecoin interests. The incident serves as a warning to the wider cryptocurrency community about the risks associated with DeFi and emphasizes the urgent need for stronger security protocols within these platforms. While no official regulatory statements have been issued yet, this incident could propel discussions around stricter oversight and security enhancements in the future. This event comes at a time when the total value of losses suffered by DeFi platforms reached $106.8 million in Q1 2025, illustrating the ongoing threat posed by such vulnerabilities.