KuCoin Recovered 84% of Stolen Cryptocurrencies
Cryptocurrency exchange KuCoin has recovered most of the funds. In September, it lost $280 million in a hacking incident.
Johnny Lyu, a co-founder and CEO of KuCoin, announced that the exchange had recovered 84% of the stolen assets. According to Lyu, the recovery process involved on-chain monitoring, contract update, and legal compensation. He also noted that the exchange would release more details on the refund once the case closes.
According to Lyu, KuCoin exchange has resumed full services for trading 176 tokens on its platform. He said services for the remaining coins will reopen before November 22. Totally, the cryptocurrency exchange has 230 tradable assets on its platform.
Lyu announced the news on Twitter. However, he did not specify the exact amount of assets lost from the hacking incident. KuCoin initially estimated user losses at $150 million, while cryptanalysis company Chainalysis subsequently estimated losses at $275 million.
Lyu stated that the breach affected hot wallets containing Bitcoin (BTC), Ether (ETH) and ERC-20 tokens. Major cryptocurrency projects subsequently froze a large number of stolen ERC-20 tokens to prevent withdrawals. In early October, Lyu declared that KuCoin executives managed to find the attack suspects with substantial evidence at hand.
Red flags addressed by KuCoin
KuCoin faced a major hack on September 26. The breach affected the company’s Bitcoin (BTC), Ether (ETH), and ERC20 online wallets, after the leak of private keys. Bitfinex and Tether, the two entities froze $33 million in total. Still, despite the security flaw, the cost of most top-level cryptocurrencies, as well as DeFi tokens, scarcely showed any negative action even though massive hacks, like this one, have traditionally resulted in sales throughout the market.
In early March this year, the KuCoin team announced to the world that it would undergo a massive corporate restructuring. Furthermore, the company also appointed a new director. At the same time, it is still unclear where exactly the actual KuCoin headquarters are.
Considering these facts, people have started to question the legitimacy of KuCoin’s operations. Some even went as far as to say that the platform could be a huge scam. To address these concerns, Charlie Cai, the KuCoin media manager, asserted that the cryptocurrency exchange is a genuine platform backed by well-known mutual funds. As early as 2018, it obtained a $20 million investment from IDG and Matrix Partners. IDG is very picky when investing in exchanges of cryptocurrencies, he stated.
Cai proceeded to highlight KuCoin’s cash flows. Thus, affirming that in August 2020 alone, $13.35 billion was traded through the company’s spot trading platform. Meanwhile, $13.51 billion was traded on the KuCoin futures platform.
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