Summary:
What we lost:
On September 12, Kame experienced an exploit that affected 42 different tokens.
A total of 829 wallets were impacted, resulting in a loss of user funds.
Breakdown of the Exploit in Token Category:
Most of exploited funds is stable & bluechip (BTC, ETH);
There are ~1.5M $SEI was exploited;
Around $124k are of Sei eco token with not so high in liquidity (mostly meme tokens).
What we recovered:
Compensation Plan:
Token Denomination:
Each affected user will be refunded based on the $USDC value of the tokens lost.
Pricing Methodology:
Blue-Chip Tokens (WBTC, WETH, SEI, SEI LSTs, and stablecoins):
We calculate the refund value using the 7-day TWAP (Time-Weighted Average Price) sourced from Coingecko.Sei Ecosystem Tokens:
We apply a fair pricing model, taking into account:The price before the incident
Current market price
Liquidity depth and stability
Compensation Plan:
Stage 1: Recovered Funds & Kame Treasury Distribution
Recovered assets from Primary Exploiter: These assets were returned after negotiation with Primary Exploiter. Approximately $917,490 (at current market price)
Recovered assets from Whitehat: These assets were handled by whitehat hackers. Approximately $21,894.23
Kame team treasury’s fund: Kame team has committed with its available cash reserves to cover the lost funds which add up to 75% of total lost funds
Total refund amount of this stage: $974,687.53
User Confirmation Process (Starting Sep 19, 2025):
Connect the affected address
Switch network to Sei
Review your recorded lost assets
Review Terms & Conditions
Agree to the compensation offer by signing with the affected address (you have to be fully revoked before clicking on Agree)
Or Appeal if you wish to dispute our record
Users will have 3 days to make any APPEAL (if any) and 5 days (since Sep-19) to AGREE with our initial data or adjusted data after appeal request.
The final deadline for confirmation step is Sep 24, 2025 0:00 UTC.
Upon agreement with users, we will distribute the above amount to all agreed users before Sep 25, 2025 0:00 UTC.
Stage 2: Monthly payback for the remaining amount
The remaining lost funds, totaling $324,895.82, will be distributed to affected users in which option they choose below. The first installment is scheduled for October 25, 2025, and payments will continue monthly according to the chosen option.
Option 1: Full Refund over 12 Months
100% of the remaining funds (equivalent to $324,895.82)
Paid in monthly installments directly to the wallet used to sign the Stage 1 agreement
Start Date: Oct 25, 2025
End Date: Sep 25, 2026
Option 2: Accelerated Refund (40% in 3 Months)
40% of the remaining funds (equivalent to $129,958.33)
Paid in 3 monthly installments directly to the wallet used to sign the Stage 1 agreement
Start Date: Oct 25, 2025
End Date: Dec 25, 2025
Conclusion
This incident marks a difficult but important moment for Kame. Our priority from day one has been to act with integrity and protect our users.
By committing 100% of our available treasury and offering a clear, verifiable compensation plan, we aim to close this chapter in the most transparent way possible.