Bitcoin Forum

Until the hype around Kucoin subsided, the hacker moved some of the bitcoins, as you can see in the screenshot how they are distributed.

https://i.imgur.com/hmwv9Bt.png

https://bitaps.com/48898311016b2001e87a71478f625109e322e9282b72ac19bde17f049501eed4/1NRsEQRg5EjmJHbPUX7YADVPcPzCQBkyU7

The attack was to transfer bitcoin, but the ERC20 token was intercepted by the project owner in various ways such as freezing or converting the project token to another token. Kucoin's attack was a big hit, but with a timely interception from all sides, the damage was significantly reduced.
These hackers are stupid enough to take away a handful of Bitcoin and mostly ERC20 tokens.

I think they are not stupid but I think they choose to do that since they know they can make some choices upon distributing the ERC20 tokens to different wallets but suddenly it was intercepted faster as they expect that's why we can see that it didn't affect to much to the price of bitcoin as well to those tokens affected by the hackings. But I want to know the further more updates since this is so interesting issue happen this days.

Foolish people who trust tokens ERC20! Such "freezing" indicates that there is no decentralization... ;)
And hackers are good (if they existed at all!)

Exactly
As they will probably be able to really get money only from bitcoin we can now clearly see what is decentralized and what is not.

Remember that blocking a hacker is good, but govermentmaydecide to block money from common people

It also try to move $500,000 worth of USDT but was unsuccessful because the address has been blacklisted on the contract to call transfer (), hence the transaction is reverted.

https://i.imgur.com/lVekylZ.png

https://etherscan.io/tx/0x9f8aab73768737882476cf75c665320cb0b73274196fc1d337d91ef28a282846

Unfortunately, there is one address that is not yet blacklisted,

https://etherscan.io/address/0x710da7a06b0c66a18fed27dfa53d937c69ed3b2c

Which is moving funds just right now swapping it using Uniswap.

Hackers could not have imagined that the tokens they took away were frozen so quickly by project owners.
The source code is owned by the project owner. CEO Oyster previously printed more tokens and dumped them on Kucoin.
We need to realize that decentralization is something impractical because projects are developed by a group of people. It is better to make the source code public and self-developed communities like Bitcoin.

Based on me Googling for a minute, it seems like surprisingly this KuCoin hacker didn't even mix or coinjoin the coins(at least yet). What is it with successful exchange hackers and them not mixing/CoinJoining their coins? It seems to be the obvious move lmao; or am I missing something on why they don't do it?

bull's eye! now who will believe this decentralisation thing? or are we just going to forget this scenario and pretend nothing happened? where everyone just seemed to move on and forget what has been obviously exposed to us? but on a serious note, i dont think people will stop trusting these erc20 tokens. now that a lot are awaiting this eth 2.0
 even hackers need to learn their lesson here. i guess  ::)

I'm kinda sad to see some people bragging ERC20 token creators for freezing funds. You don't get that yours could be frozen as well, do you? Seems nice when it's a hacker that is being stopped, but when you're affected yourself it doesn't look that well anymore. We're supposed to be decentralized.

They probably do not feel like being in a rush - holding your BTC in the wallet you've initially transferred hacked coins to or moving the coins to another wallet is about the same thing unless they want to cash out, right? Like Mt Gox, there's plenty of time during which they have to take care of probably almost all aspects of their lives from a security perspective, lol.

Edit: Maybe they're looking to exchange their BTC through Bisq? In that case, I guess it doesn't even matter whether you've mixed your coins anymore.

If we talk about the things that the hackers will do with the bitcoin, we can give them an idea of what they will do because they will figure out how they can do to get the money without other people knows. The hacker is smart enough to know what they suppose to do to avoid tracking from others. We will see the next thing that they will do because we can track the transaction.

Does it make any difference to instant mix them or wait a few days, or even years?

They can mix those coins at any given time.  Except is some consensus rules changes  which is unlikely

They're good but not the best. They won the battle when they successfully broken the security of KuCoin's hot wallets and got some coins. But they've lost the next one when they decided to diversify their loot to include a number of ERC20 tokens.

At least the steps taken by the altcoin developers or owners were able to contain the impact of the hack of KuCoin. The exchange won't be suffering from a very heavy blow to their finances.

"I don't mind using centralized coins because they have never frozen my coins." - Everyone who has had their coins frozen, before their coins were frozen.
"I don't mind using centralized exchanges, because they have never frozen my account." - Everyone who has had their account frozen, before their account was frozen.
"I don't mind using centralized web wallets, because my wallet has never been hacked." - Everyone who has had their wallet hacked, before their wallet was hacked.

Same old story. It seems that endless amounts of warnings and countless numbers of other victims are not enough for people these days. They need to experience person loss before they start taking things seriously.

Yeah, if they are not in a rush to cash out, then why start trying to offload the coins now when they are all over the news and all eyes are on them? Just wait a few months until the next exchange hack hits the headlines, and then you can move/mix/coinjoin/trade/sell/offload them when people are all looking elsewhere.

     I kinda feel bad for the hacker(s) for this though. All the efforts that they have invested into hacking the exchange (kucoin) all went to waste. And all because of their impatience. What a shame. They already had it, byt lost it. Had they waited a few months or even a year, when talks about the hacking has cooled down and people are not looking into it that much, they would've pulled it off. Tsk tsk. Great job for kucoin tho.

Hack in Kucoin is still ongoing maybe since the hacking is already obvious there is no reason any more to hide it from everyone. For sure they are trying to rush the cashout of the fund because Kucoin knows it already but until now the hack is still going. But it might be easier to track every transaction if they don't use any mixer with the help of the authorities there might be a small chance to catch these scammers in my opinion. Cashing out these funds is not easy to do for sure. But these hacking news is going to have a big impact on Kucoin as a lot of their users and investors are going to panic and cash out their funds on the website.

Who else believes in decentralization tales?
I already wrote that all smart contacts have the function of blocking funds.
https://bitcointalk.org/index.php?topic=5247581
From the one side, it is a good practice when the owners of smart contracts block the stolen funds, then issue new tokens and transfer them to their owners.
But on the other hand, not all companies can take advantage of this privilege, but only large ones.

Probably it's not the lack of decentralization, but the fact that for the most part all these ERC20 tokens are of no value at all!
What is this cryptocurrency that can be additionally printed or frozen? And then how does it differ from banks and cash?

If tokens are of no value at all, then why is money paid for them?  :D

Is it about cryptocurrency or tokens?
If we are talking about tokens, then the most important difference is that we do not need banks and other intermediaries.
 We do not need to wait for long responses to inquiries, to receive extracts from the registers. Now most of the questions can be solved by pressing 1 button: "sign"  :D

Too bad the hackers made a wrong choice in picking those ERC20 tokens, but seeing the ERC20 token owners freezing the coins is really not what decentralization is all about, imagine waking up one faithful day and they decide to to freeze everyone's token, that's really bad, it shows that there is no such thing as decentralization in ERC20  :-[, but I know alot people won't stop using ERC20 tokens,even after what we saw the owners did right before our eyes, everyone will just be glad that the hackers didn't get away with the money.

People would have different sentiments to these and this indeed shows that decentralized is totally bullshit with some projects that do really able to block out transfers or even revert or freeze and thats not how decentralization works.It might have its pro's but this one shows the reality on which one is truly decentralized.

Not only for kucoin but on every platforms/projects out there on tightening up their security if they dont like the similar thing happened here.
Hackers are just lurking in the dark and just waiting for the right opportunity if they do able to find a hole.

For sure, the hacker/s got some idea about this part, is mixing the Bitcoins they hacked on Kucoin. They already have done the difficult part, which is getting inside the system of Kucoin, for sure the latter part will become easy for them.
Maybe they will first wait for the issue of this hack will be somehow forgotten for a moment or another issue will pop up and this Kucoin hack will somehow lay low before the hacker/s will start another move again on how they will make those Bitcoins fresh or converted to cash or other cryptocurrencies.

Thankfully exchanges and third party has some measures towards this, it would affect the Bitcoin price significantly if ever this was liquidated by the hackers to Fiat. That's why, you should trade money with every asset you had, because data breach could happen at any moment regardless how popular or secured you think the exchange you're using.

Typical precaution from hackers. They will let the situation die down before moving their stolen stash. Would be stupid if they will not use any of those mixer services. But the addresses can be tag and don't know how they can get away from it. But definitely, they will get something out of it even if some hacked coins are frozen.

A reminder for all crypto users that no matter how secure an exchange is, they will be vulnerable to hackers as softwares are getting sophisticated these days.

I'm not saying this a smart thing to do but I was then thinking that they are planning this.  Every transaction can be traceable but it was very unfortunate that we don't have a way to stop it earlier before they completely transferred it to their wallet. I was wondering if there is a certain tool or a group of people focusing on this kind of scheme and freeze the said transactions. Because until now, we only have just a raw record of its transfer and it was still hard to find the holders of these especially when it runs into mixers.

I agree. Those hackers are not that stupid to be said for they have intercepted the security of Kucoin but badly taken away mostly ERC20 tokens and just a handy amount of Bitcoin. Badly, they have unexpected and even underestimated that the action to prevent the hacker on disseminating the ERC20 gone wrong for project owners easily make their action against the hacking being done to tokens involved on the said scenario. This was really an interesting news that many are surely keeping on update since many have been using Kucoin and they are waiting to see what will happen to the hacked tokens and if the hacker will be successful on executing his plan now that project owners are freezing their tokens and the addresses are being blacklisted to prevent the successful transferring of the hacked cryptos.

It is funny how the sentiments shifted from blaming the kucoin hacker to feeling sorry for them aside from throwing stones on cryptocurrency being centralized and be able to freeze and saves people's funds.  I do hate centralization but in time like this, it is a good thing to be able to freeze addresses and disable transfer of hacked items in order to prevent the hacker to gain maximum profit of their crimes and at the same time save the stolen fund from being spend at least.

Centralization and decentralization both have their pros and cons.  Besides, I believe that absolute decentralization is just a wishful thinking.

questions and answers that might explain that if it is not valuable, of course there will be no transaction and no recognition, especially if you want to pay something that is of no value. this seems like a misperception no one wants to waste money just like that if it is of no value.

Yea they can leave it as is as long as they want, but it would make more sense(in my opinion) if they just mix/coinjoin them right now and let the coins sleep for a certain amount of time, and just move out the coins in small increments as to not raise suspicion.

exchange not a coin but if your a fan of it you should be aware now that your fav exchange is hackable but dont fret just yet because team are now also aware and will do thier best to avoid further happenings simillar to this  .

security . now you know

they never realized that but now they also know that tokens can be manipulated . the next thing they hack all they gonna get was full of btc's and no tokens involved , thats more scary but token owners / exchange / and users wont just allow their coins or thier costumers coins to get hack because its a loss for them and for thier reputation .

KuCoin is a reputable exchange platform that is responding to its users from the get-go.
It is true that there are users who are frustrated by the incident like others who have supported KuCoin.
This attack has shocked us so it is so important to review the vulnerability of the platforms and correct them to make them more secure. Kucoin will cover the funds of users that may have been affected by the attacker.

https://www.google.com/amp/s/www.financemagnates.com/cryptocurrency/news/kucoin-says-user-funds-will-be-covered-completely-after-fridays-150m-hack/amp/ (https://www.google.com/amp/s/www.financemagnates.com/cryptocurrency/news/kucoin-says-user-funds-will-be-covered-completely-after-fridays-150m-hack/amp/)

The PlusToken scammers have been liquidating their stolen stash using exchanges such as Huobi, and no one is able to freeze those funds. The problem is that stolen KYC information is available relatively cheaply in the dark market and it is not that difficult to set up a fake exchange account. Coins will be traded using fake exchange accounts, and the funds will be withdrawn using fake bank accounts. No one can do anything about it.

https://decrypt.co/43066/130-million-of-kucoin-hackers-haul-to-be-frozen-by-crypto-projects

"Orion Protocol has updated its smart contract to render $8.5 million stolen tokens obsolete, Covesting has frozen the $520,000 stolen, and KardiaChain has invalidated $9 million worth of tokens.

Crypto company Velo Labs announced that it will invalidate all of the 122 million VELO tokens stolen in the hack, worth about $76 million. VIDT Datalink will freeze 14 million VIDT, worth about $6.4 million. SilentNotary will replace all of its tokens, including the $94,692 affected, and Ocean Protocol paused its smart contract after $8.6 million was lost.

Tether, the stablecoin company that produces an eponymous US dollar-pegged coin, froze $22 million worth of the cryptocurrency. (No word yet on what will happen to the penis.finance, PUMPANOMICS, RETARD TOKEN, The Hunger Game and Dino Token that ended up in the hacker's wallet)."

Is it bad when the crypto community took action so quickly to combat theft?

That's the thing, that there are a lot of tokens, which have a high cost, but are garbage!

Yes, it's really very convenient to be able to freeze or arrest your money by pressing one button "sign"! ;D
Before, you need to wear shoes and go to the bank! :D

very disappointing that scammers is a criminal and very demonic ways  to earn ,kucoin is one of the best believers in exchange top users to trade altcoins etc.but now it is move stolen btc

The ends do not justify the means, though. Sure, no one wants the hacker to get away with it and freezing all their stolen coins seems like a good outcome, but the very fact that an anonymous person can unilaterally decide just to freeze some funds or lock down some addresses with zero oversight and zero ability for the affected parties to appeal or contest the decision is the complete opposite of decentralization. It's even worse than fiat banks. At least banks have rules they must follow, if they lock your account for some reason there are set processes you can go through to reverse the decision and have your account unlocked, and there are banking regulators you can appeal to if you disagree with your bank's decision. As much as I prefer decentralized systems, and as much as I dislike centralized fiat banks, they are at least regulated. Centralized scam coins like this are the worst of both worlds - zero decentralization and zero oversight. All the power in the hands of one person who can do whatever they like.

These scam coins can lock your coins at any time, for any reason, and there is nothing you can do about it.

I do agree with your point of view and the way you state your pov implies that cryptocurrency needs regulation to be able to at least safeguard peoples fund which I also think is necessary.  But, I still believe that cryptocurrency even though isn't fully regulated is still under the grasp of the existing law.  So whenever something unusual happen, authority can always step in to investigate and process disputes between parties and penalize crypto-criminals as long as the case is brought to the authority.

Actually, I think the exact opposite.

An argument can be made for regulating centralized exchanges as the businesses that they are - these exchanges are often holding millions of dollars of their customers' money, often with no oversight. They frequently lock, freeze, shutdown or seize customers' coins and accounts, and offer little to no mechanisms for customers to challenge their decisions. Time and time again we see exchanges simply lock accounts and steal coins stating vague reasons or the triggering of unspecified algorithms, and the customer simply has to take the loss. It is one of the many reasons I have never used a centralized exchange, and I encourage others also to stop using these exchanges. You shouldn't be trusting a centralized exchange to look after your money, but if you are going to go against all good advice and do that anyway, then you should at least have some legal recourse available to you when that exchange decides to steal your coins or lock your account.

However, bitcoin itself does not need regulating, and governments, tax agencies, fiat banks, and all the rest should stop sticking their prying noses and grubby fingers where they don't belong. The whole point of bitcoin is to be decentralized and not to rely on third parties (which includes not relying on centralized exchanges).

Sure, I have nothing against law enforcement stepping in to try to track down a hacker and thief as in this case. What I do have a problem with is centralized scam coins which can unilaterally and without recourse lock a user's money. That's even worse than fiat.

Several Stablecoin assets such as USDT worth $ 33 million have also been frozen by the Bitfinex and Tether platforms which have centralized control over USDT so that the funds will not be transferred, this also applies to other ERC20 tokens. Hackers seem to lose fast with some parties who have complete control.

The Kucoin team regarding this border issue will also be responsible for fully replacing the funds that were stolen. The Kucoin team is also working on fixing the withdrawal of funds, but currently it is still in the "waiting" stage.
The restrictions that occur in Kucoin also create discussion and urgency about a centralized platform security system that must continue to be developed so that it does not happen a second time.

Every exchange will tell you that they are the more advanced and secure exchange, but then you will keep seeing news of hack on these same exchanges. I believed that by now a lot of these exchanges must have realized that they are the main targets for hackers and tightened their security level. I really am expecting more from these exchanges.

Keeping platform secure  should always be the priority for them, they shouldn’t be making the cryptocurrency market an easy place for hackers to zoom off with huge amounts of money like this. I hope they do something about these hackers in future.

1k bitcoins is certainly not nothing. they took what they could---everything in the hot wallets. there's nothing stupid about that! thankfully kucoin didn't have that much in their hot wallets, besides tokens.


that's both good and bad---good in cases of hacks and thefts, bad if you actually need censorship resistance.

with money like bitcoin, censorship resistance is important. with ICO/security tokens, that's less true IMO. different trust/security models for different use cases.

Hacking exchanges seem to be normal in this industry. Many exchanges were fell because of this event. Every time there is a bullish momentum in the market, a catalyst like this will change its trend. Kucoin is one of the best cex but still there are perpetuator who tried to move the stolen BTC. We hope that the criminal will be find but I think the hacking cases won`t ceased even in the next years. Until the security of exchanges can`t crack, hacking events still continuous to ruin the ecosystem of cryptocurrency.

Its too impossible to identify those hackers and those addresses especially if they are using some site for mixing their bitcoin, well this is a lesson to be learned and exchanges should know this by now since many hacking incidents happened on exchanges. Though Kucoin assure that they will shoulder this and their insurance can handle, I’m still doubt on this.

KuCoin has to accept their losses and the success of these hackers will eventually give them a reason to create a very strong key that will save them int the coming days as anytime soon these hackers will get back to them.
A lesson to learn either but this is not the first case that it happens in the market, some reputable exchanges experience the same. And to think that hackers are smarter than those you have been KuCoin.

Moreover, in this kind of business, we are prone to hacking incidents and we can't assure also that we are safe all the time.

it must be said that kucoin has declared that the loss of assets will be covered by an insurance, and that all users will be compensated, obviously they will have to increase their security level, because if the hackers have breached their security it will mean that they will soon reappear! unfortunately holding coins on exchanges are exposed to this type of risk, it is not the first nor the last, to remember that binance was also hacked, mtgox and many others

That would be good if all transaction was intercepted. If only hackers are good in stealth then they can't get compromised. Anyway, it is better intercepted than making hacker getting succesful. Gladly Kucoin has been so resilient in monitoring the activities of the hackers that lead to the success of interception. Damage had been minimized as OP had stated and that is the good thing. We cannot allow any more bad news to exchanges getting hack and etc.

This is actually surprising. Usually the hackers wait for a few years, before they cash out their loot. In this case they seems to be in a hurry. Not much has been done to hide the transactions by mixing the coins, and they are using the established exchanges to do the crypto-to-fiat conversion. Either the thieves are very experienced players, or they are over-confident noobs.