- KuCoin reports security breach as cybercriminals make away with $150M in Bitcoin
- The hack occurred in the early hours of the day
- KuCoin has initiated an extensive audit to ensure the safety of user funds
Cryptocurrency News Today – KuCoin, one of the most prominent crypto-exchanges in the world based on trading volume, has reportedly suffered a security incident. The exchange was hacked earlier in the day. While the exact details of the incident are not fully known yet, a whopping $150 million worth of funds has been moved out of KuCoin exchange to an unknown user address. The address mentioned here has since initiated test transactions and the funds are believed to still be in the address, at press time. Via a statement a while back, KuCoin exchange tweeted:
“We have detected several large withdrawals since September 26. According to our latest security audit report, the funds consist of BTC, ERC-20, and others in KuCoin’s wallets. They were moved out of the exchange and contained some of our total asset holdings.”
KuCoin has Initiated an Extensive Audit to Ensure the Safety of User Funds
KuCoin also announced that an extensive security audit is being done at press time. It added that to ensure the safety of user funds, it has suspended all withdrawals and deposits. It is paramount to note that at press time, KuCoin had not classified the incident to be a hack. The exchange has instead opted to classify the case as a security incident (even though the situation has the tell-tale signs of a hack). The announcement adds:
“It appears KuCoin has been hacked. Usually, after a hack, the $BTC outflow rises sharply and eventually becomes zero. Since September 25, the outflow has been zero continuously.”
The exchange also reassured users about fund losses. It claimed that all losses will be covered by KuCoin and its insurance fund completely. The CEO of KuCoin Johnny Lyu will do a Livestream later on to tackle the incident.
Users Reacted Rashly to the Hack on KuCoin
The reaction of the community to the security breach on the exchange as expected was not friendly. Many users have called out the exchange for what they believe is a lack of transparency from them. They accused the exchange of not initiating any formal communication immediately after the security incident. For its part, the KuCoin exchange has requested that users give them more time to conduct a proper investigation and review of the situation. This issue has hit KuCoin hard. The accusations of an alleged lapse in communication on the part of the company’s management have resulted in KuCoin shares dropping significantly by 10% to 15%.