Sei Network’s Kame Aggregator Suffers Hack, Recovers Partial Funds Through Negotiation

Key Highlights

• The Sei Network’s Kame Aggregator experienced a hacker attack on September 13, 2025, resulting in an undisclosed amount of losses.
• The Kame team communicated with the hacker and recovered 185 ETH so far.

The Sei Network’s Kame Aggregator, a decentralized exchange aggregator designed to optimize liquidity across the ecosystem, fell victim to a cyber intrusion earlier today. According to reports from Foresight News and Binance, the attack exploited vulnerabilities in the protocol’s smart contracts, allowing unauthorized access to user funds. The exact amount stolen remains undisclosed, but the incident highlights ongoing risks in the DeFi sector on high-performance blockchains like Sei.

Kame Aggregator serves as a native tool on the Sei blockchain, which positions itself as the fastest Layer 1 EVM-compatible network for trading applications. It aggregates liquidity from over 12 sources, including DragonSwap, Yaka Finance, and Astroport, to provide users with the best swap rates. The protocol leverages Sei’s sub-second finality and low fees to facilitate efficient one-click trades. This hack disrupts operations at a time when Sei has seen rapid growth, with monthly active addresses surpassing 6 million earlier in 2025 following integrations like MetaMask.

The Kame team responded swiftly by announcing the breach on social media platforms. They initiated direct communication with the attacker, a rare but increasingly observed tactic in crypto incidents. The hacker agreed to return portions of the stolen assets, leading to the recovery of 185 ETH, valued at approximately $500,000 based on current market prices. This partial restitution underscores the fluid nature of some exploits, where perpetrators sometimes engage in negotiations to avoid tracing or legal repercussions.

Kame Team Secures 185 ETH Return from Hacker

Details on the negotiation process remain limited, but the team’s statement emphasized collaboration with blockchain forensics firms to monitor the funds’ movement. The recovered ETH has been traced back to the protocol’s wallets, confirming the transaction’s legitimacy. Kame’s developers have paused certain trading functions to conduct a full audit of the affected contracts. Sei Network officials confirmed they are assisting in the investigation, though the blockchain’s decentralized structure limits centralized intervention.

The incident occurred amid Sei’s preparations for further upgrades, including enhancements to its Giga protocol for higher throughput. Kame, as the first native DEX aggregator on the chain, integrates deeply with these features to enable complex routing for optimal pricing. Users are advised to avoid interacting with the platform until the audit concludes. This event follows a pattern of aggregator vulnerabilities seen across ecosystems, where flash loan attacks or oracle manipulations have previously drained millions.

Blockchain security experts note that Sei’s parallelized EVM, while boosting speed to 200,000 TPS, introduces complexities in contract verification. The Kame exploit likely involved a reentrancy bug or unauthorized approval, common vectors in DeFi. The protocol’s TVL, tracked by DefiLlama, stood at several million dollars prior to the hack, reflecting its role in Sei’s expanding DeFi landscape. As the team works to restore full functionality, liquidity providers and traders monitor the situation closely for potential impacts on the broader Sei ecosystem.