Kucoin cryptocurrency exchange hacked, over $150M assets taken out

Large withdrawals of certain cryptocurrencies from Kucoin were observed few hours back which indicates a large scale attack. Kucoin exchange has halted withdrawals and hopefully not worth the hackers time going outside of bitcoin, Ethereum and ERC 20 tokens.

Kucoin hacked

Hackers can easily swap the Ethereum and ERC20 tokens on a total decentralized crypto exchange like Uniswap that doesn’t require any KYC or even a registration.

The worry would be that the loss would make them insolvent and close-up, meaning another BG-type 5-year process to get your funds back regardless of which coin.

$4M in ETH & $146.5M in ERC-20s seems to be the total. We have always thought highly of Kucoin. It sounds like insurance will cover losses, so hopefully the exchange will survive. This has been confirmed in their official statement where it says cold wallets have not been touched by the hackers.

$150,000,000 of assets have been transferred from KuCoin wallets to this wallet. Here’s what a twitter user said, “Some advice, if kucoin allows withdrawals again take it all off regardless of opportunity, I have never seen a CEX that has gotten attacked before not cut corners down the road. If you have bags that are kucoin exclusives, kiss them goodbye or held em off-exchange as souvenirs.

Kucoin says withdrawals were done today at September 26, 2020 at 03:05:37 (UTC+8). The losses will be covered by Kucoin and their insurance fund. Their CEO will be making an update on this situation at 12:30 PM UTC +8.

Update – It’s not just ETH/ERC-20s that have left kucoin wallets. Observing their BTC addresses, 1NRsEQRg5EjmJHbPUX7YADVPcPzCQBkyU7 receives 1008 BTC from KuCoin.

Their LTC was drained as well: LQtFoidy5TmLrPP77MZzgMRffqPsmRfMXE

Yeah, this is what “keeping all your eggs in one basket” results in.

We are putting this out there now as an integrity check, because we feel the announcement might not be fully honest if not.