Posted 7 months ago | by Ben Armstrong

KuCoin Stung by $150mln Hack – Allegedly Stolen Funds Frozen on Other Platforms

Last Friday KuCoin announced that it had been the victim of a massive hack. It is the biggest crypto exchange in Singapore, and KuCoin disclosed that it had detected abnormal and unidentified transactions from its hot wallets.

Consequentially, the transactions were confirmed as attacks, and $150 million was stolen in Bitcoin, Ethereum and other coins from the exchange. Immediately after the incident, KuCoin published an update on social media, sharing more details related to the case.

In particular, initial reports found out that yet unknown hackers had managed to take over the private keys of some hot wallets, and then conducted unauthorized transactions to outside accounts.

Hacks are Part of the World

$150 million in different crypto had been sent out from two KuCoin hot wallets, of which there were over 11,400 ETC, 14,700 BSV, 26,700 LTC, 18,400,000 XRP, 1,000 BTC stolen. This is a massive amount of crypto to lose – although some of it may be sitting on other exchanges that are cooperating with the investigation.

Until now, KuCoin has shut down the entire hot wallet system, while maintaining the cold wallets, since they are not connected to the internet and were not impacted by the attack.

KuCoin CEO, Johny Lyu guaranteed all cold wallets remained untouched and secured, and any damages from this incident would be covered by the KuCoin and their insurance fund.

After the announcement of the hack, other exchanges shortly took actions as well.

Two centralized platforms Bitfinex and Tether have frozen a number of suspicious accounts, which are suspected to involve in the KuCoin’s attack.

Not Easy to Make Crime Pay

According to Paolo Ardono, technology director of Bitfinex and Tether, a total of $33 million in USDT and EOS have been suspended, which is a necessary precaution until there are more detailed reports regarding the investigation.

At the moment, KuCoin is working with international enforcement agencies to dig deeper into what happened.

The hack has delivered a blow on the Asian exchange – before the event, KuCoin was ranked 16th in daily transaction volume with more than 200 crypto being traded, circulating over $100 million in its daily cycle.

Since the breach was published, KuCoin’s native token KSC has dropped 14% in its price – although it may bounce back in the coming months. Other exchanges and crypto traders should be aware of hacking risks – as KuCoin had good security measures in place.

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