KuCoin a Singapore based crypto exchange reveals about a hack through a post on its website. KuCoin Global CEO, Johnny Lyu confirm the hacker’s attack on September 26, 2020. The company discloses that the perpetrator wisely manipulated the system and emptied funds of the hot wallets.
KuCoin regard itself as the most advanced and safest crypto platform to exchange Bitcoin, Ethereum, Litecoin, TRON, USDT, and more, is now hacked and around $150 million funds are on stake.
To inform you, hot wallets are the apps that manage the cryptocurrency and are connected via the internet, on the other hand, cold wallets are stored in offline mode. Like other crypto exchanges, KuCoin also uses a hot wallet to store the assets required for exchanges and also for fund transfer.
The trouble started when the customers reported withdrawal issues. Firstly, the company encountered a system error and later the admin of KuCoin’s Telegram channel indicated the users not to deposit or withdraw funds looking at the situation.
Gradually the company witnessed large withdrawals from the hot wallet of the company which roughly amounts to $150 million. To be very specific the hacker manages to secure funds of 11,484 Ether (amounting to $4 million) and $146 million including other tokens.
However, the company assures to reimburse the customers who lost their funds due to the hack. At present, KuCoin has dismissed the withdrawal and deposit and the teams are trying to locate the perpetrator.
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