Decentralized finance (DeFi) platform KiloEx has announced plans to fully compensate users who were affected by the $7.5 million hack that took place earlier this month. The platform, known for its perpetual exchange services on the Arbitrum network, faced a critical blow when a vulnerability in its smart contract system was exploited by malicious actors. The attack drained millions in user funds, shaking the confidence of its growing community.

Despite the setback, KiloEx has responded with a proactive and reassuring approach. In an official statement, the team behind the platform expressed deep regret over the incident and pledged to cover the losses of all impacted users. They clarified that a comprehensive investigation is underway, with blockchain security experts being consulted to trace the attack and plug the exploited loopholes. Transparency, they emphasized, will be at the core of their recovery process.

Users are expected to be compensated through a combination of treasury funds and a structured reimbursement plan. While exact timelines haven’t been finalized, KiloEx has promised regular updates to keep affected users informed. The move has garnered cautious optimism within the DeFi community, as full compensation following such attacks is still relatively rare in the sector.

The incident serves as a sobering reminder of the vulnerabilities in even well-audited DeFi protocols. However, KiloEx’s swift action and commitment to user trust may help it retain its position in a highly competitive landscape. Community members have expressed both frustration and appreciation — frustration over the loss itself, and appreciation for the company’s willingness to take responsibility and make users whole again. As the platform works to fortify its systems, the hope remains that this painful episode becomes a turning point toward stronger, more resilient DeFi infrastructure.