A hacker exploited KiloEx’s price oracle system, using Tornado Cash to move funds and open leveraged positions based on artificially low token values. This resulted in approximately $8.44 million being drained from users. The attack was detected at 19:00 UTC by the KiloEx community and Binance and BNB Chain security teams responded rapidly. Their coordinated efforts identified the compromised oracle system as the root cause of the breach. Binance blacklisted related wallet addresses to prevent further withdrawals, while the BNB Chain team collaborated with cross-chain bridge providers to restrict access for the attacker. Using internal and open-source forensic tools, Binance tracked the hacker’s movements and supported law enforcement. After negotiations, the attacker agreed to return 90% of the stolen funds in exchange for a bounty and immunity from prosecution, totaling $6.1 million. This restitution was returned to KiloEx users. This incident highlights the urgency of swift, collaborative security responses in decentralized finance. Binance reiterated its commitment to protecting the crypto ecosystem by pledging ongoing improvements to threat detection, coordination, and user protection.