Cybercriminals continue to create new and innovative attack vectors that continue to target many well-known crypto platforms. For example, Johnny Liu, CEO of the Singapore-based cryptocurrency exchange KuCoin, said on September 26 that the stock exchange had undergone a major hack, resulting in the company receiving Bitcoin (BTC), Ether (ETH) and the ERC. Affected 20 hot wallets. Charlie Kay, KuCoin’s head of media, told Cointelegraph:
“After the accident, KuCoin acts quickly and transparently to deal with it. We do our best to reduce the impact of the accident by working with various blockchain projects, security companies and cryptocurrency exchange companies. ”
In total, KuCoin is estimated to have lost over $ 200 million in customer money. Despite security breaches, the price of most major cryptocurrencies, as well as DeFi tokens, has shown little or no negative action, despite the fact that serious breaches such as this have traditionally led to a sale in the market. .
More technically, Tsai emphasized that a total of 130 million stolen digital tokens have already been protected or are being recovered by the KuCoin security team. In this regard, Tsai also mentioned that Tether (USDT) has frozen a total of 22 million hacked USDT stack coins, while Velo Labs also announced that they will reissue and replace all VELO tokens that were transferred as part of the theft. “The affected 122 million VELO tokens (approximately $ 75.7 million) will be withdrawn,” he added.
Similarly, some of the other codes that the company claims were acquired after the order became public, including Silent Notary (SNTR), Covesting (COV), Orion Protocol (ORN), KardiaChain (KAI), NOIA Network (NOIA) and Opacity . (OPQ). ).
Red flags covered with KuCoin
Earlier in March, KuCoin was at the center of a series of controversies. The cryptocurrency exchange faced the possibility of a class action lawsuit alleging that KuCoin provided its customers with “false and / or misleading data.” Similarly, another lawsuit – Chase Williams against KuCoin – claimed that the exchange traded in unlicensed securities, which is illegal.
Furthermore, at about the same time, the KuCoin team announced to the world that it would undergo a massive corporate restructuring process, as a result of which the company will change its trademark from one registered person in the Seychelles to another. In addition, the company also appointed a new leader who had not previously played an important role in the stock exchange. Meanwhile, it is still unclear exactly where KuCoin is located.
Based on the above findings, people began to question the legality of KuCoin’s operations, some even going so far as to claim that the platform could be a major exit scam. Addressing these issues, Kay said, “KuCoin is a real platform backed by popular venture capitalists. In early 2018, we received a $ 20 million investment from IDG and Matrix Partners. IDG is very selective when investing in exchanges with cryptocurrencies. ”
Tsai then continued to spin off KuCoin’s cash flows, saying that in August 2020 alone, $ 13.35 billion was sold through the company’s spot platform and $ 13.51 billion on the KuCoin futures platform.
Security experts are thinking about it
Cointelegraph contacted John Jeffries, CFO of CipherTrace, a security and cryptography company, to gain a better understanding of the general situation. He noted that most of the cryptocurrencies stolen from KuCoin were ERC-20 tokens that could be easily flushed through the DeFi protocols.
In addition, it is worth noting that after the KuCoin hacking, the attackers began converting thousands of dollars into Synthetix (SNX) network tokens to Uniswap, the largest decentralized exchange after total closed value. The hackers are estimated to have redirected at least $ 1.2 million in SNX tokens in four separate transactions. On this subject, Jeffries stated:
“This was the first high-profile case where DEX, Uniswap, was used as a mixer. Unlike central stock exchanges, DEX cannot freeze funds – only certain projects. Another important impact here is that companies are directly affected by the theft of tokens. These stolen tokens like Crypterium and Tether because the hack included CRPT and Tether tokens on the EOS and Ethereum blockchains. ”
Madeline Kennedy, communications director for Chainalysis, a global cryptocurrency analyst, pointed out that her company discovered that over $ 275 million in cryptocurrencies were likely to be compromised, making it one of the largest cryptocurrency exchanges in human history.