KuCoin exchange lost more than $ 150 million as a result of hacker attack

On Friday, September 25, the KuCoin cryptocurrency exchange came under attack by hackers. Attackers gained access to one of the site’s hot wallets and withdrew crypto assets worth more than $ 150 million.

According to an article in the company’s blog, the amount of losses is still being calculated, but one of the Ethereum wallets associated with the attack has more than $ 150 million in assets. After the hack, the CEO of KuCoin Johnny Lyu announced a stream in which he explained the details of the attack.

According to Liu, on September 25 at 9:51 pm Moscow time, the exchange’s risk management system recorded a significant volume of transactions from the company’s hot wallet, and ten minutes later the system warned of a low wallet balance. Already at 22:15, a team was formed to investigate the incident, and at 22:20 the server of this wallet was turned off. At 11:20 pm, the team began moving the remaining funds in the wallet to cold storage.

KuCoin CEO stressed that all possible forces are being thrown into the investigation of the incident. At the moment, deposits and withdrawals from the exchange are blocked, but the functions will resume within a week. In addition, the exchange team contacted other popular trading platforms asking for help in tracking the stolen funds, as well as blocking the accounts of the attackers.

According to Liu, the breach was caused by the leak of the secret key from the hot wallet. The attackers managed to withdraw BTC, ETH and various ERC-20 tokens. Liu did not specify the exact amount of the stolen assets, saying only that the hackers gained access to a small part of the site’s funds. At the same time, the volume of the KuCoin insurance fund should be enough to cover the damage.

Recall that in early September , the Slovak cryptocurrency exchange Eterbase suffered from an attack by hackers . The total damage to the exchange is estimated at $ 5.3 million.

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