KuCoin Chief on Hack: ‘We Have Found the Suspects’

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In Brief
  • KuCoin CEO Johnny Lyu said the exchange has identified suspects in the hack.

  • The authorities are now involved.

  • Another batch of tokens worth $64 million has been retrieved from a suspicious addresses, bringing the total amount retrieved to $204 million so far.

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KuCoin founder Johnny Lyu claims that suspects in the security breach have been identified “with substantial proof,” linking them to the September hack.



Writing on his Twitter handle on Oct. 3, Lyu stated that the authorities have now officially gotten involved in the case.

Lyu also went on to reveal that a fresh set of digital assets worth $64 million is no longer under the hackers’ control, which he said brings the total value of assets retrieved to $204 million.

New Developments Following KuCoin Hack

In his Twitter thread, Lyu further revealed that the exchange is returning to full functionality following the security incident. According to him, 31 tokens have resumed normal deposit and withdrawal services, with the major high-cap coins like BTC, ETH and USDT set to fellow shortly.

Shortly after the hack was detected, all trading, withdrawal and deposit services on KuCoin were stopped as the exchange scrambled to thwart the hackers. BeinCrypto reported on Sept. 28 that the hack strategy involved compromising the platform’s hot wallets containing large amounts of typically low-cap ERC-20 tokens, such as Synthetix and OCEAN.

 

New Information

Immediately after the hack, an unprecedented cross-platform joint action ensured that the hackers did not get it all their way. BeinCrypto previously reported that $35 million worth of USDT was frozen in suspicious ETH, OMNI, TRON and EOS wallets. At the time, it was believed that the hack compromised about $150 million worth of tokens.

The new information from Lyu, however, indicates that the total value of tokens stolen by the hackers significantly exceeds that figure. The extent of law enforcement involvement remains unknown, as Lyu offered few details. However, the regulatory position on cryptocurrency in Singapore, where the exchange is registered, is one of the friendliest in Asia. 

BeinCrypto will monitor the story and bring more updates as they appear.

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David is a journalist, writer and broadcaster whose work has appeared on CNN, The Africa Report, The New Yorker Magazine and The Washington Post. His work as a satirist on 'The Other News,' Nigeria's answer to The Daily Show has featured in the New Yorker Magazine and in the Netflix documentary 'Larry Charles' Dangerous World of Comedy.' In 2018, he was nominated by the US State Department for the 2019 Edward Murrow program for journalists under the International Visitors Leadership Program (IVLP). He tweets at @DavidHundeyin

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