- Extensive transaction in terms of Bitcoin (BTC) and Ethereum(ETH) was observed in the hot cryptocurrency wallets.
- The price of KuCoin hit a rock bottom within a few hours of the news release on social media.
- The list of addresses that contributed to the draining of funds was released by KuCoin in an updated statement.
KuCoin, a Singapore based cryptocurrency exchange, released an official statement regarding the malicious transfer of funds in the crypto wallets on Friday. According to the report, numerous transactions were witnessed since September 26, 2020, at 03:05:37 (UTC+8) on the Singapore based exchange.
However, Johny Lyu Kcoin, CEO of KuCoin exchange, assured that only the hot cryptocurrency wallets were affected by the unfortunate losses. The cold wallets remained secure and were not harmed in any manner. The hot wallets, however, were redeployed.
“Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.”, said the official statement released by KuCoin.
Later, an updated statement was also released that stated the major addresses where the funds were transferred.
According to Etherscan, a sum of more than 11,480 ETH was leaked from two crypto wallets on the KuCoin exchange. Besides that, an aggregated sum of more than $150M was also leaked from two Ethereum crypto wallets.
These transactions led to a drop in the price of KCS, KuCoin’s official exchange token, by 14% within an hour of the news spread on social media.
However, as soon as the incident took place, strict measures were enforced by the team and a helping hand was extended by Binance.
Also, in a recent tweet by the CEO, an update was provided on how the law and police officers have been involved in the matter to resolve it while the restoration of funds is being handled by the crypto exchange.
Well, this is not the first time when hackers have targetted crypto exchange for funds. It has been seen quite often and the security of the money at crypto exchanges still seems like a tedious affair.
What do you think about this? Do you think cold wallets will out rule the usage of hot wallets? Will it lead to a decrease in the number of people trading in cryptocurrencies?
Let me know your views in the comments!