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Crypto Exchange KuCoin Hacked, $150M in BTC and ERC20 Tokens Involved

Crypto Exchange KuCoin Hacked, $150M in BTC and ERC20 Tokens Involved - CoinQuora
  • KuCoin has been hacked today.
  • $150 million worth of Bitcoin, ERC20 tokens, and other cryptos within KuCoin’s hot wallets were transferred out of the exchange.
  • The private keys of KuCoin’s hot wallets were leaked.
  • All deposit and withdrawal services within KuCoin are temporarily suspended.
  • All losses are covered by KuCoin’s insurance fund.

Singapore-based crypto exchange KuCoin has announced a security incident on its platform. Suspicious withdrawals involving a huge amount of funds were detected from today, September 26, 2020, at 03:05:37 (UTC+8).

Bitcoin, ERC20 tokens, and other cryptocurrencies within KuCoin’s hot wallets were transferred by the hackers out of the exchange. Despite this, the exchange assured the users that the assets within cold wallets are safe and unharmed.

In response, KuCoin Global CEO Johnny Lyu hosted a live stream a few hours after to state more updates about the hack.

As per the recap, the reason for the assets outflow is revealed:

It is due to the leakage of the private key of KuCoin hot wallets. We have re-deployed our hot wallets already.

Apparently, $150 million worth of tokens had been tracked mainly to a wallet address, with other abnormal transactions monitored from other wallet addresses.

0xeb31973e0febf3e3d7058234a5ebbae1ab4b8c23 received transactions of 11,484 Ether, worth roughly $4 million, plus $146 million in transactions of other cryptos including DeFi tokens Maker, OMG, and YFI.

The KuCoin team is quick to set up a special team to cope with the breach. As of the moment, they are already in contact with other crypto exchanges including Binance, Huobi, OKEx, and Crypto.com to blocklist suspicious addresses and trace affected funds.

All deposit and withdrawal services within KuCoin are temporarily suspended until further notice. Yet after a week, withdrawals may be enabled again, said Lyu.

When asked if KuCoin’s insurance fund is enough to cover the losses, Lyu answered that,

Yes, it’s enough. Starting from early 2018, we have established the insurance fund to deal with unexpected security issues such as this.

This is in line with the previous announcement stating that any affected user funds “will be covered completely by KuCoin and [our] insurance fund.”

Investigations are still ongoing regarding this recent malicious attack. Meanwhile, KuCoin has reached out to international law enforcement to resolve this issue. Rewards of up to $100,000 are offered to anyone who can provide valid and helpful information.

As per CoinGecko’s data, KuCoin is still ranked as the 4th leading crypto exchange by its trust score. It has recorded a $110,610,314 trading volume within the last 24 hours.

An aspiring journalist who spills her ideas in cryptocurrency and blockchain-related matters. With her background in Communication and Journalism, she is more inclined to write about reality than fiction.