After news of a security breach that resulted in the loss of more than $ 200 million in tokens in KuCoin, several projects responded quickly to prevent the transfer of users’ property to other exchanges.
Speaking to Cointelegraph, KuCoin Global CEO Johnny Liu said that at least $ 129 million of the tokens affected by the hack and Bitcoin (BTC), Ether (ETH) and ERC20 hot wallets are “safe” or able to be restored. Although the hackers are said to have escaped the $ 150 million tokens in the first place, the new estimates close to a total of $ 200 million.
Hackers stole a number of ERC20 tokens as part of the theft, but many projects were quick to respond to the breach.
Ocean Protocol team members have reportedly frozen over 21 million OCEAN utility tokens, which at the time of writing is estimated at around $ 7.8 million. The project has since announced that it has begun working on Hard Fork on its contract “to reverse the negative impact of the breach on anyone who chooses to adopt the new version of the contract.”
In addition to Bitfinex and Tether (USDT) crypto exchanges worth $ 33 million that were frozen, Lyu of KuCoin said the two companies rented an additional $ 2 million for OMNI and TRON. The CEO said KuCoin had coordinated with VIDT_Datalink to freeze and recover $ 14 million of 14.49 million stolen VIDT tokens and had worked with Covesting to freeze and recover 560,000 COV tokens. Akropolis has reportedly stopped all AKRO transactions and blacklisted the address of the known hacker.
Other projects required various solutions to protect users’ funds after a breach, including swaps.
Liu said KuCoin worked with Silent Notary to improve SNTR contracts and replace 78.9 billion stolen tokens, or about $ 100,000. KuCoin has also worked with Orion Protocol to complete an ORN token swap for $ 3.81 million, estimated at $ 8.8 million at the time of writing, and with Velo Labs, for $ 120 million in VELO tokens that have been transferred to a hacker’s address to be republished and exchanged for a value. About $ 70.8 million. Kardiachain reportedly recovered $ 9 million from the stolen 524,948,751 KAI from 2,976 wallets after a token swap.
Alef was also forced to take drastic action after the project reported on its blog that 8.5 million ALEPH – about $ 1.2 million – had been hacked in the breach. The project claimed to have reissued tokens for a new smart contract with the previous title and “old” tokens.
Not all measures were effective. In a series of tweets on September 27, cryptocurrency tracker Whale Alert reported that KuCoin hackers had transferred 540,000 Synthetix (SNX) network tokens worth about $ 2.7 million to unknown wallets in multiple transactions. The project has yet to release a statement on its Twitter account or blog at the time of publication.
Reports about the extent of the hack are still running, but Lyu mentioned that KuCoin is prepared to cover all users’ money affected by the hack with its own insurance. The CEO said that the stock exchange “will fully resume its operations within a week.”