KiloEx's native token, KILO, surged more than 14% in 24 hours on the recovery news.

Earlier this week, users of a decentralized exchange (DEX) called KiloEx were left reeling with losses of around $7 million after a sophisticated attack. The DEX, which offers trading of perpetual futures, suffered an exploit that exposed its systems to manipulation and left investors feeling anxious about their funds.

The attack is believed to have originated from a vulnerability in the platform's price oracle system. Oracles are blockchain-based tools that relay outside data to a blockchain, where smart contracts use them to make decisions for financial applications. Hackers exploited this flaw to manipulate asset prices and steal funds from KiloEx.

However, in a surprising turn of events, KiloEx managed to recover all of its hacked funds after the attack. This swift recovery has been hailed as a positive example in an otherwise grim landscape, where crypto hacks and exploits have resulted in billions of dollars lost to attackers.

The firm will be awarding a 10% bounty to white hat hackers involved in the resolution of the exploit. This is a commendable move by KiloEx, which recognizes the valuable contributions made by security experts who helped resolve the issue.

"The legal process to formally close the case is now underway, in coordination with judicial authorities, our legal team, and third-party experts (special thanks to @SlowMist_Team@blitezero, who have extensive experience in such matters)," KiloEx said in a social media post. This statement highlights the collaboration between KiloEx and external experts to bring the exploit to a swift close.

The recovery of funds by KiloEx has also highlighted an emerging trend in the crypto industry, where community members are taking matters into their own hands to recover lost funds. In contrast, most exploits result in significant losses for investors, with only a small percentage of stolen funds ever being recovered.

CertiK, a blockchain security firm, reported that only 0.38% of stolen funds were returned in the first quarter compared to 42.09% in the previous quarter. This stark contrast underscores the importance of swift action and community involvement in resolving crypto exploits.

Despite the positive outcome at KiloEx, the exploit serves as a stark reminder of the risks associated with decentralized finance (DeFi). Small vulnerabilities can lead to massive losses, testing the trust in code. The crypto industry is constantly evolving, and security experts must remain vigilant to prevent such incidents.

As the crypto market continues to grow and mature, it's essential for investors, developers, and regulators to prioritize blockchain security and collaborate on finding solutions to mitigate these risks.