- User funds stolen in $150 million+ hack will be completely covered by KuCoin
- KuCoin said the hack is under investigation by law enforcement
- Hackers managed to obtain the exchange’s hot wallet’s private keys
Cryptocurrency News Today – recently the Singapore-based KuCoin exchange announced that $150 million worth of BTC and other cryptos were moved from its hot wallets to an unknown wallet. In a bid to tackle the issue the exchange has decided to completely cover the cost of the stolen funds. It said:
“All user funds affected in heist will be completely covered by KuCoin.”
The exchange said the attack began on September 26th. The actual amount of funds stolen remains unknown. Although, an Ethereum address that has been linked to the attacker has “received 150 ETH-based tokens (worth $150 million). The incident is under investigation by law enforcement.
Hackers Managed to Get the Private Keys of Hot Wallets on KuCoin
Via a Livestream, the CEO of KuCoin, Johnny Lyu remarked that hackers managed to get the private keys of the hot wallets on the exchange. However, the moment the exchange noticed the withdrawals, the remaining tokens were moved into new hot wallets. The exchange revealed that the exchange assets in cold wallets are safe and it has redeployed the hot wallets.
KuCoin has posted the addresses where the stolen funds were moved into, including Bitcoin, Bitcoin SV, Ethereum, Litecoin, XRP, Stellar Lumens, Tron, and Tether wallets. According to data given by Blockchair and Tronscan, the wallets that have been linked to the heist have received:
- 14,713 BSV
- 26,733 LTC
- 18,495,798 XRP
- 999,160 USDT
- 1,008 BTC
- 199,038,936 TRX
- 9,588,383 XLM
Since the hack happened, the exchange has been working with crypto issuers and exchanges to halt the transfer of the stolen tokens.
Drastic Action to Tackle the Situation
In a statement, KuCoin announced that the CTO of Bitfinex Paolo Ardoino, have confirmed that Tether has frozen 22 million USDT (about $22 million). tokens successfully. The exchange also confirmed that Velo Labs will redeploy and replace each VELO token that was stolen in the heist. Covesting, Silent Notary, and VIDT_Datalink have all announced that they will freeze or re-issue the stolen funds.
Ampleforth revealed via a tweet that a contract upgrade has been deployed to disable all transfers by the bad actor. With a trading volume of $100 million, KuCoin remains one of the largest crypto exchanges in the world. KuCoin’s KCS token fell by 14% an hour after the news of the hack to trade at $0.86. At press time, the price had dropped further to $0.83.