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KuCoin Exchange Hack Update: Looted Funds Nearing $200M

Singapore-based cryptocurrency exchange KuCoin has followed up on yesterday’s statement about a mega hack at their platform. 

KuCoin released more information about the hacking incident, explaining that the looted funds were more than the $150M previously reported. 

They posted a list of additional “suspicious addresses” that were also compromised, making it clear that yesterday’s hack was more extensive than initially thought.

Among the listed addresses include one holding $10.8M worth of BTC and another with over 1.2M in LTC. Other addresses contain $4.5M in XRP and about $2.2M worth of BSV. The newly disclosed stolen funds bring the total amount of siphoned crypto to $193 million. 

The CEO of the exchange, Johnny Lyu, noted that the loss forms just a small part of KuCoin’s total asset holdings. He added that his team would thoroughly evaluate the security breach to determine the total value lost. 

In yet another twist to the KuCoin hack saga, the hacker has started laundering his loot. He began swapping his $OCEAN for ETH via Uniswap, dragging the token’s price down by 4% in less than an hour. 

As per a Sep 27 tweet from Alon Gal, the hacker will likely crash the token hard due to its low liquidity. The $OCEAN token is currently trading at $0.365 as per data from CoinMarketCap

Lyu and his team have since moved all funds from their compromised hot wallet to a cold wallet. He has also assured all affected users that the exchange will cover all losses from their insurance fund. 

Could The Exchange Have Reacted Faster?

KuCoin, which claims to be the most secure and advanced crypto exchange, may have delayed its response to the recent hack incident. 

On Sep 25, long before the exchange publicly announced that they were experiencing a security breach, users reportedly complained of delays in transactions.

Unfortunately, the KuCoin team dismissed any concerns of an ongoing hack, claiming that “the transactions were simply pending.” 

The exchange later confirmed the security breach and moved to shut down its server to stop the flow of funds from its hot wallet. Unfortunately, the intervention came a bit too late, as the hacker had already impaired the private passwords to the hot wallet by then. 

As a last-ditch effort to halt further losses, KuCoin transferred the unaffected funds to a new cold wallet address. 

KuCoin to Resume Normal Functions Soon

Following yesterday’s devastating hack, KuCoin temporarily paused deposits and withdrawals as their security team carried out “a thorough security review.”

Steph Burwell, KuCoin’s Telegram group administrator, later assured users that the exchange is working with major exchanges to recover the stolen funds. 

He added that the trading platform had brought in several blockchain projects, security agencies, and law enforcement to resolve the issue. 

KuCoin has now taken some effective measures to halt further security breaches to its platform and is expected to resume normal operations within a week. 

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