KuCoin Loses About $200M as the Exchange Adds New Suspicious Addresses

Cryptocurrency exchange KuCoin was hacked yesterday. The team updates about suspicious addresses indicating that the damage is massive.

By · Sep 28, 2020 . 6min read

KuCoin Loses About $200M Crypto hack latest news
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Recently, when the cryptocurrency world has started to attract more attention and investors, cyber attackers have also shifted their focus on this area. The cryptocurrency exchange KuCoin suffered an attack from hackers yesterday. The reports distributed that hackers drained $150 million worth of cryptocurrency from its exchange. Today, KuCoin posted more suspicious addresses. According to KuCoin, the damage so far is closer to $200 million. The CEO of the Singapore-based exchange, Johnny Lyu, stated in a Livestream this morning that the loss, which totals approximately $193 million, forms just a small part of KuCoin’s total asset holdings. He further said that the team is working on the list and evaluating the total value.

Kucoin has so far traced the lost tokens to be worth around $200 million. The classification covers ETH and ERC-20 tokens, bitcoin, LTC, XRP, BSV, XLM, and TRX based tokens. KuCoin team is in contact with many major crypto exchanges such as Huobi, Binance, OKEx, BitMax and Bybit, and blockchain projects, security agencies, and law enforcement to work on the hack.

KuCoin Establishes Insurance Platform to Compensate the Losses

Generally, when exchanges undergo hacks, investors are not able to compensate from time to time. However, Kucoin has set up an insurance platform. Thus, KuCoin assures it, users, that the losses will be fulfilled. On the other hand, Tether froze USDT unit worth $ 22 million. Some other cryptocurrency holders have also frozen the stolen assets on the network. Also, Kucoin contacted 22 different exchanges, attempting to prevent the sale of stolen assets.

Kucoin states about the suspension of deposit and withdrawal services. However, other services like spot trading for most pairs, margin trading, futures trading, and peer-to-peer trade are still accessible. However, several assets on the exchange were affected. This includes 3.8 million ORN. To prevent the hacker from benefiting from the exploit at the ORN community’s expense, the Orion Protocol took an executive decision to reissue all ORN tokens 1:1 via a token swap. The trading service will be active today at 5:00 UTC+8.

Conclusively, KuCoin has told its customers that it will reimburse any losses with its insurance fund. It expects to re-enable deposits and has paused withdrawals to stop the hackers from stealing more money within a week.

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