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Kucoin recovers 235 million of funds stolen during a hack attack

Johnny Lyu broke the news on Twitter

THEexchange Kucoin, the subject of a hacker attack in September, with the subtraction of 280 million dollars in tokens, announced that it had repossessed 84% of the funds in question, or 235 million.
To announce the good news was the CEO of the exchange platform, Johnny Liu. The attack on Kucoin was one of the largest ever carried out and its actual size was only grasped as the days passed. At first, in fact, there was talk of 150 million in stolen funds, while by the end of the necessary inspections, the actual figure had almost doubled. In fact, the hackers had stolen no less than 30 million in Bitcoin, 147 million among various ERC-20 tokens and an additional 87 among other crypto projects. Some protocols would fall into this last category Challenge.

hacker - Kucoin recovers 235 million of funds stolen during a hack attack

Johnny Lyu's tweet

In a tweet he published, the co-founder of Kucoin said that the affected funds were recovered thanks to the use of a number of modalities such as chain monitoring, contract updating and judicial recovery. He further added that the full details will be the subject of a detailed report once the police have closed the case.
Lyu then added that the platform has resumed operations for 176 tokens. While for the remaining ones, the resumption date of the exchange operations is expected before next November 22nd. Unless problems arise in the meantime.

Hackers are still trying to launder the loot

The damage produced by the attack, which took place last September 25, had been immediately neutralized for one part. Bitfinex it had in fact frozen 13 million USDT on EOS, while Tether he had done the same for another 20 million in the address Ethereum of an attacker. Other similar operations had allowed the recovery of approximately 160 million in funds within a few days, using various procedures. For example those implemented by Orion (ORN) and Opacity (OPQ), who have decided to swap the old tokens, thus making the previous ones practically unusable.
Despite this, the hackers had managed to collect a token value of almost $ 13 million by the end of the month. Also thanks to their recycling with the help of decentralized protocols, starting from uniswap. While only a little over a million dollars in funds had passed through the centralized ones.
Earlier this month, the cybercriminals returned to appear with the clear intent to complete the work. To try to do this, they used mixers this time in order to move the ERC-20 tokens to another Ethereum address.

Kucoin will compensate those who have lost funds

In the moments following the attack, Kucoin had guaranteed that he was ready to return any stolen funds to his users. To do this he would use the compensation provided for by the insurance policy high just to protect themselves from such an event.
Which, however, continues to be a recurring note in the life of trading platforms. With not insignificant consequences in terms of user confidence.
On the business side, Lyu said Kucoin is expected to return to full operation over the next week. However, the image damage caused by the September attack, from which the platform will now have to demonstrate that it has learned the lesson.

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Dario Marchetti

I have a degree in Literature and Philosophy from the Sapienza University of Rome, with a thesis on the eastern border of Italy at the end of the First World War. I have collaborated with several sites on many issues and led the work group that published the official CD-Rom of the SS Lazio "History of a love" and "Photographic History of Magical Rome".

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