Kiloex's $7M Hack: A Miracle Unfolds

TL;DR

• KiloEx gets hacked for $7M but pulls off a rare feat: full recovery. Miracles do happen.

• North Korea’s Lazarus Group tries a Zoom deepfake hack and flops, but the threat’s real.

• Brazilian Ponzi schemers get 170+ years behind bars after fleecing $190M from 20,000 investors

KiloEx Hack: $7M Gone… And Then Miraculously Back

In a wild plot twist, DeFi exchange KiloEx lost $7 million in a hack… and then got it all back. (If you’ve ever lost $7 million and recovered it, please email us. We have questions.) The hack targeted their price oracle system across multiple blockchains, but a white hat hacker swooped in and helped recover every penny—earning a 10% “thank you” bounty.

Don’t get too cozy, though. CertiK says $1.67 billion was stolen industry-wide in Q1, and only 0.38% ever comes back. The KiloEx happy ending is the outlier, not the rule. Moral: DeFi platforms can still be dangerous - don’t rely too much on any one wallet or DeFi protocol.

Read how it all unfolded »

Lazarus Group Tries Deepfake Zoom Scam—Fails, But You Should Worry

North Korea’s infamous Lazarus Group (the ones who hit Axie Infinity) just tried to punk Manta Network’s Kenny Li through a Zoom call. They didn’t even bother with AI deepfakes—just stitched together old meeting footage to impersonate Li’s teammates, then tried to sneak in malware disguised as a Zoom “update.”

Li spotted the ruse (no audio? Seriously?) and shut it down, but the message is clear: Never download “updates” from a Zoom call, a random DM, or your cousin’s Hotmail account. The Lazarus crew is getting creative, and Americans are definitely targets.

How Kenny Li dodged the bullet »

Brazil Brings the Hammer: Crypto Ponzi Bosses Get 170+ Years for $190M Scam

For once, the bad guys didn’t get away. The trio behind Braiscompany—who promised “guaranteed” returns and delivered heartbreak—just got sentenced to a combined 171 years. Joel Ferreira de Souza, the ringleader, will be decorating his cell for 128 of those.

They stole $190 million from 20,000 investors, ran the cash through shell companies, and left a $6 million breadcrumb trail for authorities. Most victims? Still waiting for justice (and their money). It’s Brazil’s biggest crypto fraud trial ever—a rare win for the good guys.

Ponzi justice, Brazilian style »

Stay sharp out there. If you stumble on a scam, or if you have a crazy crypto story, reply to this email—we want to hear it.
Forward this to a friend who still uses “password123”—you might just save their wallet.

Until next time,
The Crypto Asset Recovery Team