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Crypto exchange KuCoin was able to recover 84% of $ 285 million stolen in September


The KuCoin cryptocurrency exchange has recovered most of the funds stolen by hackers in September 2020. Within days of the hack, more than $ 160 million worth of tokens were recovered. Either by blocking the hacker’s addresses or by re-issuing tokens on a new smart contract.

At the moment, 84% of the assets have been restored. This progress was due to “tracking the movements of cryptocurrency in the blockchain, updating smart contracts and foreclosure in court”. Details of the process will open after the end of the investigation.

KuCoin has resumed servicing almost all tokens. Some operations are still on hold but should resume shortly. The CEO of the exchange thanked everyone who supported the platform during the incident.

Recall that on September 25, hackers attacked the KuCoin cryptocurrency exchange. Attackers gained access to one of the platform’s hot wallets and withdrew crypto assets equivalent to $ 150 million at the time of the hack, their current value is almost twice higher. Hackers stole BTC, ETH and several types of ERC-20 tokens. At the beginning of last month, the exchange team announced that it had found attackers who had hacked the site.

Thanks to cooperation with other cryptocurrency exchanges and companies, KuCoin managed to recover 78% of the stolen funds ($ 222 million). Another 6% ($ 17.45 million) helped bring law enforcement and security services back. The hackers managed to cash out 16% of the stolen assets, which at the time of the theft were worth approximately $ 45.55 million. The insurance fund of the exchange covered this loss. Thus, the company was able to almost completely compensate for all losses. This incident had no effect on customer deposits, the head of the trading platform emphasized.

Information security

According to the head of the exchange, attacks of this magnitude are “rare in the industry,” and therefore difficult to combat. KuCoin plans to increase investment in information security in the future. Lyu noted that the investigation into the incident is not yet complete.

KuCoin is on the list of five trading platforms that have come under attack by hackers in the past year. Moreover, the September attack was the largest for KuCoin in its entire history.

However, in general, the number of exchange hacks is already less, thanks to the introduction of the latest software focused on safe storage of funds and trading.

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