The KuCoin exchange lost more than $150 million in a hacker attack

On Friday, September 25, the cryptocurrency exchange KuCoin was attacked by hackers. The attackers gained access to one of the platform’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 on one of the Ethereum wallets associated with the attack, the amount of assets exceeds $150 million. After the hack, the CEO of KuCoin, Johnny Lyu, announced a stream in which he told the details of the attack.

According to Liu, on September 25 at 21:51 Moscow time, the exchange’s risk management system recorded a significant amount of transactions from the company’s hot wallet, and ten minutes later the system warned about a low balance on the wallet. 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 23:20, the team started moving the remaining funds in the wallet to cold storage.

The CEO of KuCoin stressed that all possible Forces were thrown at the investigation of the incident. Currently, deposits and withdrawals from the exchange are blocked, but the functions will be resumed within a week. In addition, the exchange team contacted other popular trading platforms with a request for help in tracking stolen funds, as well as blocking the accounts of attackers.

According to Liu, the reason for the hack was a leak of the secret key from the hot wallet. The attackers were able to withdraw BTC, ETH, and various tokens of the standard ERC-20. Liu did not specify the exact amount of stolen assets, saying only that 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 a hacker attack. The total damage to the exchange is estimated at $5.3 million.