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Top cryptocurrency exchange KuCoin has been hacked

By Inkarias - 2020-09-27

The well-known and widely used Kucoin has detected some large anormal withdrawals today , September 26, 2020 around 3AM (UTC+8). According to the latest internal security audit report, 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. During the first hours after the attack, KuCoin did not immediately consider this incident as a hack. Instead, the exchange said it was related to a simple security incident, while there were plenty of signs to the contrary on-chain. It is in particular the data recorded by the analysis firm CryptoQuant that aroused suspicion. It detected in particular that an inhabited quantity of bitcoins very quickly left KuCoin wallets during the night.

Attack details

Currently, the course of the hacker's operation is not yet known, but KuCoin has been planning to communicate on the subject once more investigations will be conducted to understand the entire context of that event. According to KuCoin CEO Johny Lyu, the private key to the exchange's wallet has been compromised, giving the hacker full control over the funds. However, the exchange also claimed that it will take full responsibility for this incident including refunding stolen funds to users and will also remain transparent with the users and the community for the upcoming updates of that major case.

To ensure the security of users’ assets, the team is conducting a thorough security review for few days in order to analyse everything. The first steps has been done to ensure the safety of users and their funds and Kucoin is currently under several leads to track the funds and freeze them across the entire crypto network as much as possible.

The latest update made by the team can be directly found at the adress https://www.kucoin.com/news/en-the-latest-updates-about-the-kucoin-security-incident