Not your keys, not your Crypto – Kucoin Hacked! $150m Stolen.

[Bttzed03]

Not too long ago, there was a member here saying that it's better to store funds on exchanges rather than cold wallets because they pay interest Well, whatever interest they are offering, it's not an answer to the security risk these exchanges like Kucoin faces everyday. Think also of the opportunity costs from the days operation is suspended.

Ridiculous that this is still happening in 2021,

And it will happen again on Kucoin or other exchanges in 2022 or beyond that. Banks which existed way before crypto exchanges continues to be attacked by hackers.

[Shasha80]

This is bad news for KuCoin users, indeed the KuCoin team stated that the users fund affected will be covered by KuCoin insurance fund.
It looks like KuCoin is taking steps like Binance, hopefully the process of replacing users funds will be fast. What happened to KuCoin could
happen to other exchanges, even when Binance was hacked, it could be hacked again. Therefore, never store all the coins we have on
exchanges, it's better to store in a cold wallet that is proven safe.

[nelson4lov]

(...)
nelson4lov, can you reduce size of images in OP? Not only will everything look nicer and clearer, but it will also be easier for those users who have slow internet connections and limited internet traffic. You can use this code, just adjust size by changing numbers.

I initially sized the photos but they appeared too squeezed. So I had to remove them. But I've added some width and height again and will adjust it till it fits. Thanks for the heads up.

it's only decentralized system that are immune which is why we're all advice to make use of them.

Decentralized systems like DEXs, Protocols and even smart contracts are also vulnerable to hacks. I recall Bancor's DEX was hacked in 2018 shortly after their record breaking ICO at the time. In 2020, Both Balancer protocol and Bisq had security vulnerabilities that led to loss of user's funds.  Like every software, decentralized systems and protocols  and even smart contracts are also vulnerable but it's mostly due to bad codes or bugs which hackers tend to explore and take advantage of.

On a lighter note though, Decentralized systems provides much better security compared to centralized ones.


Bancor: https://www.businessinsider.com/bancor-hack-ethereum-2018-7?IR=T

Balancer: https://cointelegraph.com/news/defi-protocol-balancer-hacked-through-exploit-it-seemingly-knew-about

Bisq: https://www.bitsofblocks.io/post/hacking-a-decentralised-exchange-bisq-spills-the-secrets-on-their-recent-hack

The sad truth is, as far we used the centralized exchanges for trading, at one point we'll have funds on the exchange. The amount would difer based on our trading capital. Kucoin won't be the last exchange to get hacked, if you were lucky not to have your funds on the exchange when the hack occured then you should take this as a warning.

Centralized exchanges have long dominated the markets because they have better liquidity, market making and volume. But that's all beginning to change thanks to different concepts like liquidity providing and automated market making features that are incorporated into decentralized protocols like Uniswap.

[matchi2011]

This is bad news for KuCoin users, indeed the KuCoin team stated that the users fund affected will be covered by KuCoin insurance fund.
It looks like KuCoin is taking steps like Binance, hopefully the process of replacing users funds will be fast. What happened to KuCoin could
happen to other exchanges, even when Binance was hacked, it could be hacked again. Therefore, never store all the coins we have on
exchanges, it's better to store in a cold wallet that is proven safe.

Good  thing  that KuCoin  do offer the same  insurance  like what  binance  did. But in  terms of reputation  it still  stay that  the exchange  experienced the hacked. Better not to stored huge amounts of funds  as hackers are just  monitoring  your wallet  and waiting  for the  opportunities to suck  all your  money.  No  safer place  than  your own wallet  where  you have all  the access  and all the securities.

[sheenshane]

Another scammed exchange that makes the cryptocurrency becomes fraud to the eyes of people who dont know crypto-related stuff.

I followed their Twitter social media accounts and it seems they had frozen USDT and suspended some altcoins pairs to Bitcoin and Ethereum. Probably it's better if they will suspend all transactions, just like the withdrawal and deposit should be initiated immediately so that they can focus upon tracing the hacking incident.

One of the closest competitors to Binance exchange is Kucoin, but now, I don't think if there are someone traders who will still trust on them, it might always doubtful. Fortunately, Kucoin user's fund is safe and probably they aren't worried now.

[rexxarofmoknathal]

Anyway, they already promissed to return all money to the customers. Not bad

Yes, they did say they'll take full responsibility and work together with those whose accounts were hacked. Even if I got lucky and still have my funds intact, I'd still don't want to be in their position. The fact that KuCoin is refunding these people is amazing, and this type of responsibility should be adopted by all major exchanges

[CryptopreneurBrainboss]

Decentralized systems like DEXs, Protocols and even smart contracts are also vulnerable to hacks.

They're immune in the essence that when there's no bud for hackers to take advantage of you'll have a platform that would give you a 100% security experience excluding the case where phishing sites are been used to steal login/sensitive information if users and used to access/steal their funds. When most of the so called decentralized so called platforms are examined well, you'll realize they're not what they claimed to be.

IDEX as an example that claimed to be decentralized sometime back requested for her users to verify their identify (KYC) before having access to their funds and that of Binance dex blocked access to users from certain regions which just goes against what decentralized stands for.

In regards to the volume be the reason centralized exchange are dominating, well that'll soon be a thing of the past since the new decentralized exchange are coming up with impressive volumes and their user interface are improving steadily. With time it won't be that complicates to access them

[Twentyonepaylots]

Anyway, they already promissed to return all money to the customers. Not bad

Yes, they did say they'll take full responsibility and work together with those whose accounts were hacked. Even if I got lucky and still have my funds intact, I'd still don't want to be in their position. The fact that KuCoin is refunding these people is amazing, and this type of responsibility should be adopted by all major exchanges

Binance did the same last year after they got hacked. I agree, exchanges should shoulder the losses of their clients once incident happen like this, they were trusted by their customers to keep their funds safe though it is really a bad idea for a trader/investor to keep their funds be in an exchange for a long time coz shit happens just like this one. I'm glad that KuCoin is taking responsibility of what just happened, a huge lesson for their security system.

[Bitcoinislife09]

Anyway, they already promissed to return all money to the customers. Not bad

Yes, they did say they'll take full responsibility and work together with those whose accounts were hacked. Even if I got lucky and still have my funds intact, I'd still don't want to be in their position. The fact that KuCoin is refunding these people is amazing, and this type of responsibility should be adopted by all major exchanges

I've heard about it and its really sad news for a lot of users who invest in kucoin. Luckily I already take out all of my investment in Kucoin a long time ago and trade in Binance. Hackers are really doing it like big organizations that target a lot of cryptocurrency exchanges. But maybe it's a good thing to take out already your investment in the websites since the hacker might still have the control in the website's wallet. This could easily make Kucoin close I'm surprised they are going to take responsibility for this hacking incident but I don't think they could accommodate everyone that lost their funds it would just cost them a big amount.

[2double0]

This is why I prefer keeping my coins with me no matter how urgent it becomes for me to trade a coin on the basis of an opportunity smelled. It is better to lose an opportunity to trade than to lose our entire capital when these 'natural disasters' take place in the crypto world. It is not a big deal to see this exchange getting hacked when we had already seen so many high volume exchanges like Binance, poloniex and even bittrex getting hacked.

[Ryker1]

This is why I prefer keeping my coins with me no matter how urgent it becomes for me to trade a coin on the basis of an opportunity smelled. It is better to lose an opportunity to trade than to lose our entire capital when these 'natural disasters' take place in the crypto world. It is not a big deal to see this exchange getting hacked when we had already seen so many high volume exchanges like Binance, poloniex and even bittrex getting hacked.

Well, somehow time will come there are no traders anymore because they will afraid to put their money on an exchange. But for me, always choose exchange that has gained a lot of reputation, I mean ^{[not the shady} exchange. Why? --Because they always have a safe fund that willing to fund their users and they are responsible for the hacking. Look at Binance, even though they had hacked, they promised that the funds are safe and it the same goes for Kucoin, you have nothing to worry.

[BitcoinHunt3r]

Hope other's money still safe or maybe really refunded by Kucoin. Actually something like this is not  what people want and nobody know this will happen, and just hope it not happen to other exchange, maybe people who don't like to trade will said keep your money on own wallet, but there are some others who get money from trading activity too. So  let's just hope everyone's money can back again and for other exchanges maybe this will make them to upgrade their security system.

[kezinaur14]

"All your funds are safe" is hardly ever true, I don't trust that big hats of Kucoin will shell out the cash to repay the lost money. It's just not usually the case man.

[SiNeReiNZzz]

Therefore ALWAYS follow the golden rule:

NEVER store your assets in an exchange for a long time, or, if possible, do not give it into other people' s hands......

[bitsurfer2014]

Not too long ago, there was a member here saying that it's better to store funds on exchanges rather than cold wallets because they pay interest Well, whatever interest they are offering, it's not an answer to the security risk these exchanges like Kucoin faces everyday. Think also of the opportunity costs from the days operation is suspended.

Lol, I guess no one in their right mind would trade the safety of his assets for just a little incentive such as staking with interest in an exchange since they could also find alternatives to passive earning like staking via their own wallet which looks like more secure and more comfortable. Imho.

[samcrypto]

"All your funds are safe" is hardly ever true, I don't trust that big hats of Kucoin will shell out the cash to repay the lost money. It's just not usually the case man.

They said they have insurance to cover up these things so let’s see if they will pay all the money that has been stolen just like what Binance did and keep their reputation up.

Its hard to put large amount of money on any exchanges even if they are good as long as you have no control on your wallet, the risk will always there. I admire those who trade big money in exchanges, stay safe everyone.

[Oceat]

That's why never leave your coins mostly in the big and famous exchanges because they were on the list of the hackers. Even if it's not a big and famous exchanges just do not store any amount for a long time. A lot has happened already this will serve as a lesson for the future traders and investors. I wonder how could the exchanges ever recover with those stolen coins, $150m stolen is a lot. This might affect the price of altcoins in the meantime or so.

[verita1]

The first time I used an exchange platform was with KuCoin, there I learned to use all the other platforms that I know until today. When I received the news, I couldn't believe it. It came to my mind that it must have been an internal vulnerability because users have maximum security to market their funds.
It is a pain that these attacks continue to occur. The exchange platforms must redouble their security systems and constantly.

[aesma]

150 millions or more in hot wallets seems like a large amount, do they really need to keep that much ?

I used to do arbitrage trades between Poloniex, Kucoin and Cryptopia, two out of three have now been hacked. I had nothing left on Kucoin fortunately...

[Darooghe]

I lost coins when BTC-E was hacked a few years ago. Actually, it may not have been hacked because so many people believe that the owner stole the percentage of coins for himself. It is all the exchanges' responses to keep coins safe. the list of hacked exchanges is getting bigger over time. This is a huge problem for users and I believe exchanges should invest more in security and put more effort to protect the users. It's an additional investment for them but without that, they will not survive.