Singapore-based cryptocurrency exchange KuCoin has reported a ‘security incident,’ which resulted in the loss of more than $150 million of various cryptocurrencies. Hot wallets of the popular platform have been compromised and knackered for at least $150 million worth of digital assets.
As mentioned, the company reported the event as a ‘security incident’ a few hours ago, reiterating that ‘part of Bitcoin, ERC-20, and other tokens in KuCoin’s hot wallets were transferred out of the exchange.’
KuCoin Suspended Deposits and Withdrawals
The tracking resource Whale Alert has monitored most coins sent to this particular address, which saw numerous small transactions in the last few hours, possibly testing. Some of the less-known altcoins moved out of the exchange’s hot wallets include DGTX, AGI, SNX, DX, SNT, DRGN, and more.
To make sure that more authorized withdrawals cannot take place, KuCoin has put a pause on all deposits and withdrawals while carrying out a ‘thorough security review.’ The exchange stated that it had re-deployed the hot wallets after the incident, and reassured users that the cold wallets are safe and undamaged. Users who have lost any funds will be reimbursed by KuCoin and its insurance fund.
The Singapore-based exchange’s native cryptocurrency saw the negative impacts immediately: KuCoin Shares (KCS) dropped from over $1 to $0.86 in minutes. Since then, the token’s price rebounded slightly and changes hands just below $1.
KCS/USD. [Image Source: TradingView]
In the meantime, the CTO of Bitfinex and Tether, Paolo Ardoino, announced that both Bitfinex and Tether had frozen a total of $33 million USDT related to the KuCoin hack. As per Ardoino, Bitfinex froze $13 million USDT on the EOS network, while Tether froze another $20 million on the Ethereum network.
Stay safe everyone!
— Paolo Ardoino (@paoloardoino) September 26, 2020
CZ and Binance Promise Full Support in Fund Recovery
CZ and Binance CEO Changpeng Zhao, as well as other prominent individuals within the crypto sector, has expressed support and promised KuCoin that his firm will actively assist during the investigation.
CZ also took it to twitter to support the exchange’s commitment to the issue: “As always, #Binance has been actively helping other exchanges that got hacked. The sooner we get notified, the more we can help. We will work together to make the industry #SAFU-er. Our team got notified relatively early for this one. We will do what we can to help. Freezing deposits that come our way. Help with blockchain analysis, security audits/advices, and even helping connecting with other exchanges, or to law enforcement agencies in different parts of the world.”
KuCoin Flags Several Crypto Addresses and Transactions
In a recent security update on the matter, the Singapore-based crypto exchange has revealed the following ETH wallet where the hack was initiated. This address has also been flagged by EtherScan.io: 0xeb31973e0febf3e3d7058234a5ebbae1ab4b8c23
In addition, KuCoin also issued warnings for the following ETH and ERC-20 transactions:
$100,000 Reward For Credible Information Regarding the Attack
Moreover, KuCoin has revealed it will reward $100,000 for valid information with regards to the incident: “KuCoin is investigating the incident with international law enforcement, and we will offer rewards of up to $100,000 to those who can provide valid information to us regarding this incident. Please contact [email protected].”