Hackers Drain KuCoin Crypto Exchange’s Hot Wallets

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An Asian cryptocurrency exchange’s funds have been compromised in a security breach

At 19:05 UTC on Friday, the Singapore-based Digital Asset Exchange – KuCoin discovered large withdrawals of bitcoin and ethereal tokens into an anonymous wallet.

During a live event on Saturday, KuCoin’s CEO said many hackers managed to get private keys into the exchange’s hot wallet. That’s why KuCoin transferred what was left to hot new wallets, canceled old wallets, and froze deposits and withdrawals of customers.

Thereby, Lyu also confirmed that KuCoin’s cold wallet is entirely safe because it is not connected to the Internet.

He also said that hackers’ location and identity and a list of stolen funds would be made public.

According to data from the blockchain explorer Etherscan, two ethereum wallets belonging to KuCoin have sent more than 11,000 ETH, which currently trades at a price of about $350, to an undisclosed wallet address.

The undisclosed wallet address has also earned more than $150 million worth of 150 Ethereum-based tokens, the Etherscan address information reveals.

As news of the security violation spread on social media, the price of KuCoin ‘s exchange token KCS dropped by 14 percent to $0.86 within an hour on Saturday.

Kucoin is investigating the hack with foreign law enforcement, and an insurance scheme will “completely protect” stolen consumer cash.

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