$150M of digital currency stolen from KuCoin Exchange

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The digital currency exchange KuCoin in Singapore has been hacked and robbed over $150 million in different forms of cryptocurrency. 

The hacking was first found in Singapore on Saturday morning, September 26. Many behind the attack were given keys to investor funds in cryptocurrency hot wallets, or connecting to the internet so that crypto could be exchanged, and then shifted deposits out of the market. Stolen crypto portfolios included Bitcoin, Bitcoin SV, Ethereum, Litecoin, XRP, Stellar Lumens, Tron, Tether and Ocean.

The precise manner in which the attack occurred has still not been described, even though KuCoin Chief Executive Officer Johnny Lyu held a live video stream on Saturday offering more information about the event, including that cold wallets, those not linked to the internet, were secure and unaffected. For KuCoin consumers, the most important takeover is that Lyu has pledged KuCoin and its insurance policy to cover all funds looted from consumers.

Possibly reflecting a trend of sophistication in the cryptocurrency industry that has not been shown in the past, multiple platforms and cryptocurrency suppliers have worked swiftly to try and avoid anyone behind the fraud in their tracks. Bitfinex and Tether Chief Technical Officer Paolo Ardoino said on Twitter that the firm had frozen $13 million worth of Tether USDT on the EOS network and $20 million more on the Ethereum blockchain due to the theft.

The Ocean Protocol Foundation, a community behind Ocean and one of the tiny digital currencies stolen from the breach, also acted fast. It said in a declaration that a “hard fork” of the Ocean Token agreement had started, which would have the effect of reversing the stolen Ocean tokens.

Lyu also stated that KuCoin is currently in touch with other major cryptocurrency exchanges, namely Huobi, Binance, OKEx, BitMax and ByBit, in an effort to freeze stolen funds. The organization is still in touch with the law enforcement agencies and the related blockchain ventures.

As per Cointelegraph, the person or group behind the hack already has attempted to unload some Tether USDT on Binance without having hidden their tracks, indicating that they could not be very clever. 

Unlike past crypto thefts, the price of big cryptocurrencies has not been impacted. KuCoin’s own cryptocurrencies, KCS, fell 14 percent of the report.

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