Crypto Exchange

KuCoin, Singapore based crypto exchange hacked for $150 million

Published

4 years ago

September 26, 2020

KuCoin a Singapore based crypto exchange hacked

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KuCoin a Singapore based crypto exchange reveals about a hack through a post on its website. KuCoin Global CEO, Johnny Lyu confirm the hacker’s attack on September 26, 2020. The company discloses that the perpetrator wisely manipulated the system and emptied funds of the hot wallets.

KuCoin regard itself as the most advanced and safest crypto platform to exchange Bitcoin, Ethereum, Litecoin, TRON, USDT, and more, is now hacked and around $150 million funds are on stake.

(1/4) We detected some large withdrawals since Sep 26 at 03:05 UTC+8. According to the latest internal security audit report, part of BTC, ERC-20 and other tokens in KuCoin's hot wallets were transferred out of the exchange, which contained few parts of our total assets holdings
— KUCOIN (@kucoincom) September 26, 2020

To inform you, hot wallets are the apps that manage the cryptocurrency and are connected via the internet, on the other hand, cold wallets are stored in offline mode. Like other crypto exchanges, KuCoin also uses a hot wallet to store the assets required for exchanges and also for fund transfer.

(2/4) We are locating the reason for the incident, and will keep you updated once it is confirmed. Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.
— KUCOIN (@kucoincom) September 26, 2020

The trouble started when the customers reported withdrawal issues. Firstly, the company encountered a system error and later the admin of KuCoin’s Telegram channel indicated the users not to deposit or withdraw funds looking at the situation.

Gradually the company witnessed large withdrawals from the hot wallet of the company which roughly amounts to $150 million. To be very specific the hacker manages to secure funds of 11,484 Ether (amounting to $4 million) and $146 million including other tokens.

(3/4) To ensure the security of users' assets, we will conduct a thorough security review. The deposit and withdrawal service will be suspended during the period. We will restore the service gradually after ensuring a safe state. We will keep you updated.
— KUCOIN (@kucoincom) September 26, 2020

However, the company assures to reimburse the customers who lost their funds due to the hack. At present, KuCoin has dismissed the withdrawal and deposit and the teams are trying to locate the perpetrator.

Disclaimer: Koinalert’s content is only for information purpose in nature and should not be considered as investment advice. Do your own market research before investing in any cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.