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

[tbct_mt2]

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.

I hope you did not lose all your fund on BTC-e because I knew that they came back months later to pay compensations for their customers. It is not a good story but at least people got back part of their funds.

Newbies - Read before using exchanges or investing

I had a bad loss with scam exchange and its scam exit (Crypto-Bridge exchange). They forced all users to do KYC to be able to withdraw money. The KYC document will be verified by a third party company but it is a funny KYC when people can use one document to verify multiple accounts. I don't know what is the aim of that KYC requirement. I did not know honestly but months later I realized that they likely try to steal users' identity documents and use such ones for shady things later.

I thought of such risks after I read Why KYC is extremely dangerous – and useless

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[pakhitheboss]

Exchange hacking news is quite normal these days but people are still using these exchanges to store their assets rather than having them in their personal wallet.

I think it is an insider job, what I am not sure is that will Kucoin be able to compensate users who have lost their funds. The amount is in millions and it will be not easy for them to refund everything.

Such hacks are bad for the cryptocurrency market as Kucoin does have a good reputation in the crypto space.

[J1mb0]

This is sad news for the crypto market and for Kucoin we all understand that there is no certainty in the crypto market and that putting assets on an exchange is risky.
However Kucoin has insurance and I expect the stolen funds to be received back.

[slaman29]

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.

Yeah dude, it wasn't hacked. I think most people agree it was an inside job and a slow exit scam that the users found out before it happened. Even Mt Gox there is no consensus and a lot of people still insist it was the founder who was responsible. Same as QuadrigaX, all of these scandals have some suspicion on the owners. So learn our lessons, mate.

[Jating]

This is sad news for the crypto market and for Kucoin we all understand that there is no certainty in the crypto market and that putting assets on an exchange is risky.
However Kucoin has insurance and I expect the stolen funds to be received back.

If this is true, $150 million is a lot of money to be given back, and I don't know if Kucoin has that much money to refund back the stolen funds to their customers. And it might take months or years to refund that huge amount.

So if you are one of those who have lost your funds in the hack, I will say that don't expect to get your money the soonest. Don't be negative on my statement, it's not false hope either. And let this be another lessons for every crypto trader. For others who didn't lost, then good for you, but still having huge amount sitting in one exchange is not a good practice. Although it might merit to try CEX because of this incident, it might take a while though, because we all know that CEX has its own pitfall as well.

[Taskford]

This is sad news for the crypto market and for Kucoin we all understand that there is no certainty in the crypto market and that putting assets on an exchange is risky.
However Kucoin has insurance and I expect the stolen funds to be received back.

If this is true, $150 million is a lot of money to be given back, and I don't know if Kucoin has that much money to refund back the stolen funds to their customers. And it might take months or years to refund that huge amount.

So if you are one of those who have lost your funds in the hack, I will say that don't expect to get your money the soonest. Don't be negative on my statement, it's not false hope either. And let this be another lessons for every crypto trader. For others who didn't lost, then good for you, but still having huge amount sitting in one exchange is not a good practice.

That's huge amount and I doubt they can pay that and I'm worried that they will fall down from this hacking incident happened to them.

And I agree with you those who get affected should not expect anything since the amount hacked is not easy to cover and they should better learn to move one as well learn again from this another tragic events happen on one of the most reliable exchange before. This will be a huge indicator on how kucoin can manage this situation if they fail to deliver to their affected users then for sure they will fail for next time .

[Eureka_07]

This is sad news for the crypto market and for Kucoin we all understand that there is no certainty in the crypto market and that putting assets on an exchange is risky.
However Kucoin has insurance and I expect the stolen funds to be received back.

Don't expect your stolen funds to be back to you, unless they are assuring that, and if Kucoin has the funds to do that.

In my honest opinion, the hacks that aree happening on exchanges are their own fault.
It's so risky to put our money on exchanges for a long period of time, it's fine if we are actively trading on this exchange but it's still risky.
Exchanges are one of the most susceptible to be hacked.

They should atleast make more efforts in improving and maximizing the security of their exchanges, as this could also could make the trust of their customer much stronger. That's a win-win situation between the exchanges and the traders.

[ampu]

From the Kucoin hack, I learned from experience that if the assets on CEX are rich, they can repay, poor CEX is considered lost. Keeping money in a hacked personal wallet is considered lost.
We need to admit that Kucoin is doing very well, after the hack they will probably have more customers because of their huge financial capacity. They certainly won't let their money be stolen again.

[milesfull]

People like to talk about exchanges hacks so much but this is nice reason for dump, isn't it? And kucoin promissed to return all money to customers

[bryant.coleman]

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.

Baseless accusation.

I also lost large amounts of funds with BTC-e (mostly Litecoins), but the owners did whatever they could to reimburse the users. There was some mistake from their part. When the US authorities asked them to hand over user data, they refused and instead challenged them to close down the exchange. After a few months, the Americans actually managed to seize the BTC-e domain and a large part of the funds. The owners still refused to accept their defeat. They set up a new website (Wex.nz) and reimbursed the users with tokens. And they once again challenged the authorities and mocked them. The next time, the Americans not just managed to seize the funds, but they also managed to arrest one of the owners of BTC-e (Alexander Vinnik). And that was the end of BTC-e, which existed from 2011 to 2017.   

[TedMosby]

Welcome kucoin, the newest member of the hackable crypto exchange.
Your name will be included on the hacks timeline by Ledger soon.
https://www.ledger.com/academy/crypto/hacks-timeline
AFAIK, insurance company has limitations on covering case like this. CMIIW.

[Bitcoinpro]

crypto is mainstream banking technology now

cant see a future in anything that isnt kyc and also govt approved

you need to be in a coin like electroneum

with an actual decent coin amount in the billions

and proper decimal places xD

erc tokens are garbage

dont go using an exchange outside ur own country

get an airtight insurance policy ie loyds

hold some of your own funds in ur own wallet

make sure you have friends and family also invested

shud one or more of you get hacked

then the others can bail you out help you recapitalise

doing anything other than wat ive learned

is caveat emptor

[DooMAD]

I always wonder if people would still keep all their wealth in traditional banks if the money wasn't insured and there was a strong likelihood they could lose some or all of their savings whenever the bank got robbed.  Something tells me plenty of people still would, even if they understood the risk.  Learned habits are difficult to break.

Active traders have a difficult balancing act to play, since they need funds available to take advantage of any sudden moves in the market.  They need to keep some quantity of funds in there.  But anyone who isn't actively trading needs to stop using exchanges as though they were like a savings account.  There's absolutely no sense to it. 

[BrewMaster]

one important thing that some users in this topic have forgotten is that a lot of those who lose their coins on exchanges aren't exactly storing them there but instead they are traders that have to have some coins in their balance so that they could trade with them constantly.
then at some point as they are trading or have their coins in some open orders, the exchange gets hacked and they lose their coins.
these people should either stop trading (which won't happen) or start using decentralized exchanges (which has its own problems such as higher fees and lack of liquidity).

[Inkdatar]

This is really an awareness to all not to store huge funds in any exchange. As reminders always not your keys not your crypto. I've read this news in all over in social media that this exchange got hacked and of course Kucoin team assures everyone that your funds are safe. Well, this happened before that a certain exchange got hack and this is a lesson to many not to store huge of money

[posi]

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.

I never hear about BTC-E  exchange before but with the way you narrate the site hack issue will advice you not to use the exchange you dont trust next time because some exchange may actual lies sometimes. Mind you, if it not keys then it not your coin.
With that been said, kucoin exchange was opened about their hack issue and 95% of all tokens stolen by the hacker are already frozen

https://www.kucoin.com/news/en-the-latest-updates-about-the-kucoin-security-incident
https://www.kucoin.com/news/en-the-latest-updates-about-the-kucoin-security-incident
https://www.kucoin.com/news/en-the-latest-updates-about-the-kucoin-security-incident

[bimbidingdong]

This is yet another reason why storing large amount of funds on exchanges is a bad idea.

It appears Kucoin exchange has been hacked. For the past 7 hours, Over $150m in Ethereum and other erc20 tokens have been withdrawn to an unknown wallet here: https://etherscan.io/address/0xeB31973E0FeBF3e3D7058234a5eBbAe1aB4B8c23

Bitcoin outflows were moved to Bitfinix.

https://i.postimg.cc/c4xmrm97/20200926-025200.png

Kucoin's Responses

Their telegram chat has gone haywire since then as worried users have been asking about an update. Alicia (Head of VIP at Kucoin) replied:

https://i.postimg.cc/zGDcY5Yr/20200926-024909.jpg

https://i.postimg.cc/Dzx5TY3Y/20200926-032141.jpg

 

Things doesn't add up here. If the funds were being moved by Kucoin, they wouldn't be investigating. It's either you or not. Users have reported seeing empty balances and currently withdrawal and deposits has been disabled. Since we have different DeXs available now, the hacker can easily unload all those funds.


While this isn't a "confirmed" hack yet, this is a friendly reminder to everyone who still stores loads of funds on exchanges. Your funds are a lot more safer when they're stored in your private wallet. I will keep updating the thread.

Update 1:

Looks like the hacker is cashing out using shitcoins  available in decentralized exchanges. If this is a joke by Kucoin, then it's an interesting one

https://i.postimg.cc/6TxB3X45/20200926-034552.png

Update 2: – Hack Confirmation

Kucoin just confirmed the hack:

We detected some large withdrawals since September 26, 2020 at 03:05:37 (UTC+8). According to the latest internal security audit report, part of Bitcoin, ERC-20 and other tokens in KuCoin’s hot wallets were transferred out of the exchange, which contained few parts of our total assets holdings. The assets in our cold wallets are safe and unharmed, and hot wallets have been re-deployed.

We are locating the reason for the incident, and will keep you updated once it is confirmed. Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.

To ensure the security of users’ assets, we will conduct a thorough security review. The deposit and withdrawal service will be suspended during the period. We will restore the service gradually after ensuring a safe state. We will keep you updated.

As "The People’s Exchange", we will take full responsibility and maintain transparency. To keep you updated regarding the latest updates, our CEO Johnny Lyu will update more details through a livestream at 12:30 (UTC+8), September 26, 2020. Please submit your questions here if you have any.

We greatly appreciate your understanding and support.

The KuCoin Team

Update 3:
More funds are being moved. Hack still on.

https://i.postimg.cc/yN8qLL8T/IMG-20200926-041856.jpg

Update 4:

In response to the hack, Kucoin's CEO hosted a livestream to discuss details of the hack: https://www.kucoin.com/news/en-kucoin-ceo-livestream-recap-latest-updates-about-security-incident

Update 5:

Tether Treasury has frozen over $20M tethers that were stolen. They're still about $120M of movable funds + some projects have agreed to invalidate some stolen tokens from their supply: https://www.kucoin.com/news/en-kucoin-ceo-livestream-recap-latest-updates-about-security-incident



The bottom line is, Kucoin will refund the stolen funds thanks to their insurance.

Well that is really true. Not your keys, not your crypto, not your money. This is why I opted last year to just use a crypto wallet where I can just swap/exchange my crypto inside the wallet. Although the fees are high, it's still very convenient for me and I am very sure that my assets are safe with me. These decentralized platforms like Uniswap are what we need now and not these CEXs.

[Findingnemo]

One good thing is people didn't lose their money, and this is another lesson for the traders who never should store their cryptos on exchanges or better move to decentralized exchanges. What is the status of the exchange right now? They are back into the action with resolving their security flaw?

[bL4nkcode]

This is really an awareness to all not to store huge funds in any exchange. As reminders always not your keys not your crypto. I've read this news in all over in social media that this exchange got hacked and of course Kucoin team assures everyone that your funds are safe. Well, this happened before that a certain exchange got hack and this is a lesson to many not to store huge of money

Well, most newbies or users who are fond of keeping their funds to exchanges always rebut that it's much better to use an exchange to store their funds since they are "assured" that their funds are insured in those exchange just like what binance and now kucoin did when they were hacked. Well, that's something good news. But, how about to those exchange that files bankruptcy after hack which there are a lot of examples to that, well, their users have no way to go but to move on.

[squatter]

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...

Actually, 3 out of 3.

It was a long time ago, but it's worth repeating that Poloniex was once hacked. They also had a scandal last year where they stuck their margin lenders with losses to the tune of $13.5 million.

One good thing is people didn't lose their money

That remains to be seen. I really hope no one loses money. There have been plenty of "hacks" in the past where exchanges made promises initially, only to renege or disappear later on.