Another crypto exchange has suffered a loss of millions of dollars following a cyber attack. As reported, the latest victim is the Singapore-based cryptocurrency exchange KuCoin which lost $150 million after being hacked.
KuCoin Cryptocurrency Exchange Hacked
On September 26, 2020, some perpetrators hacked the KuCoin cryptocurrency exchange and made huge withdrawals. They transferred the crypto assets from KuCoin’s hot wallet, including Bitcoins, ERC-20, and some other tokens.
KuCoin’s hot wallets are the ones connected to the internet. The exchange uses hot wallets for managing funds transfer and conversion operations.
As they were exposed online, the hackers managed to hack into the wallets and pilfer the assets worth $150 million. The exchange has confirmed that their cold wallets (offline wallets) remained unaffected during the incident.
Upon detecting suspicious transactions, the exchange shut down the wallet server and moved the remaining assets from the hot wallet to the cold wallet.
Following the incident, the exchange publicly disclosed the matter via a security notice on its website. Also, they pledged to start a security review.
To ensure the security of users’ assets, we will conduct a thorough security review. The deposit and withdrawal service will be suspended during the period. We will restore the service gradually after ensuring a safe state.
Moreover, they also assured to reimburse any of their customers potentially affected during the incident.
Investigations Underway
As the exchange continued with the investigations, they figured out the suspicious addresses which they also shared in an update. These addresses were found handling BTC, ETH, XRP, TRX, and other assets.
KuCoin also collaborated with the Partner projects, other exchanges, and law enforcement to track the assets and freeze suspicious transactions.
Besides, in a live stream, KuCoin CEO, Johnny Lyu, has assured that the exchange’s withdrawal and deposit functions will be available in a week.
Users can follow the exchange’s official twitter account where they are sharing the updates on the incident.