KuCoin Reports Hack as $150M Funds Moved Out of Exchange

Vandana  |  Sep 26, 2020

KuCoin, one of the largest crypto exchanges, was hacked on September 26. The exchange has not revealed the exact information about this hack but it is specified that around $150 million funds have been moved out of the exchange in this hack. All the funds have been transferred to an unknown address. 

According to the exchange, BTC, ERC-20 and a lot of other tokens in the hot wallet of the exchange were transferred. It is also revealed that the tokens which are transferred, contained few parts of the total asset holdings of KuCoin.

(1/4) We detected some large withdrawals since Sep 26 at 03:05 UTC+8. According to the latest internal security audit report, part of BTC, ERC-20 and other tokens in KuCoin's hot wallets were transferred out of the exchange, which contained few parts of our total assets holdings

KuCoin Specifies That Extensive Security Audit is Done

KuCoin has also announced that right after the hack, an extensive security audit has been done. The major purpose of this audit is to ensure the safety of other funds and along with this, withdrawals and deposits of the users have also been suspended. 

One thing to be surprised about is that KuCoin has not yet reported this incident as a hack. According to the exchange, they are identifying this hack as a security incident even though it is quite clear that this is a hack and not any security incident. 

Exchange Will Cover Fund Losses of the Users

KuCoin has also assured the users that all their fund losses will be covered by the exchange completely. The insurance fund of the exchange will look after this situation. Johnny Lyu, the CEO of KuCoin has said that he will be doing a Livestream to talk about this incident. According to a lot of users, this incident took place due to the lack of transparency and formal communication as well. The exchange is currently reviewing the whole situation and needs more time to give an exact picture of the incident. Due to this incident, the shares of the exchange, $KCS has also seen a drop of 10-15%.

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