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Cryptocurrency Exchange KuCoin is the Latest Victim of Hacking Attack as $150 Million Washed Away

A prominent cryptocurrency exchange KuCoin becomes the latest victim of a hacking attack, which has taken away $150 million in Bitcoin and other cryptocurrencies.

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Crypto Withdrawals from Hot Wallets

KuCoin “detected some large withdrawals since September 26, 2020 at 03:05:37 (UTC+8).” The funds were transferred from KuCoin’s hot wallets to an unknown address, while holdings in cold wallets are safe and sound. According to the exchange,” part of Bitcoin, 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. The assets in our cold wallets are safe and unharmed, and hot wallets have been re-deployed.”

After the incident, the company suspended all deposits and withdrawals on the part of users. However, KuCoin called it a security incident rather than a hacking attack.

The crypto exchange announced that “if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.” But currently, they are trying to find out the reason behind sudden withdrawals from hot wallets to an unknown address. After checking out the reason and making a safe state, the deposits and withdrawals will get functional.

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The company has acknowledged the responsibility of the incident. KuCoin CEO Johnny Lyu will update users via live stream at 12:30 (UTC+8), September 26, 2020.

$150 Million in Different Coins

As it becomes now clear that 11,484 Eth worth $4 million washed away in the recent attack. The rest of the $146 million in different coins transferred to an unknown address. Even coins having a little market cap, such as Chroma, Hawala, Gladius, and Ocean Token, became victims of the latest attack.

Blockchain analytics firm Cryptoquant called it a hacking attack as outflow became rapid at once and then stopped at zero. Cryptoquant tweeted:

“It seems #Kucoin got hacked. Usually, after being hacked, the $BTC outflow increases rapidly and then becomes zero. Since 20:00 UTC on September 25th, the outflow has continuously been zero.”

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Hassan Mehmood

Hassan is currently working as a news reporter for Tokenhell. He is a professional content writer with 2 years of experience. He has a degree in journalism.

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