In an official statement, KuCoin Global CEO Johnny Lyu has mentioned the fact of hacking attack. The breach affected the exchange assets in Bitcoin (BTC), Ether (ETH), and ERC20 hot wallets, after private keys leakage. Reports mention that the amount of users losses is around 150 million USD.
After the security violation, the price of BTC has shifted a little bit. Other major cryptocurrencies, such as Ether and decentralized finance (DeFi) tokens stayed almost untouched with this hack.
A cryptocurrency exchange security breach as usually caused the market-wide sell-offs because of fear of bigger losses.
But Tether (USDT) has shifted quickly aiming to stop the transfer of assets connected to the security breach. Most exchanges, including Bitfinex, have USDT accounts associated with the hack as well.
KuCoin gets into contact with major exchanges, Tether and Bitfinex freeze thirty three million
Based on the information from Paolo Ardoino, the chief technical officer at Bitfinex and Tether, the two companies froze around thirty three million USD
If early estimates are accurate and $150 million had been compromised it makes 22% of the lost funds. He expanded on the following:
“Bitfinex froze 13m Tether USDt on EOS as part of the hack, Tether just froze 20M Tether USDt sitting on this Ethereum address https://etherscan.io/address/0xeb31973e0febf3e3d7058234a5ebbae1ab4b8c23 as precautionary measure. Stay safe everyone!”
Citing the official statement, Lyu said KuCoin corresponds now with Huobi, Binance, OKEx, BitMax, and ByBit and appropriate law enforcement agencies.
So the hackers will have difficulties in moving the funds. The CEO said:
“We are in contact with many major crypto exchanges such as Huobi, Binance, OKEx, BitMax and Bybit, as well as blockchain projects, security agencies, and law enforcement to work on this. Some effective measures have been taken, and we will update with more details soon.”