Singapore based renowned cryptocurrency exchange KuCoin funds have been hacked within a recent security breach.
Within an official announcement, the exchange added that it detected large withdrawals of Bitcoin [BTC] & Ethereum [ETH] tokens to an anonymous cryptocurrency wallet starting at 19:05 UTC time on Friday.
According to an official live stream on 4:30 UTC today, KuCoin CEO Johnny Lyu revealed that one or more hackers obtained the private keys to the exchange’s encrypted hot wallets. Kucoin transferred what was left in them to new hot wallets, abandoned the old ones, and froze new users deposits & withdrawals, Lyu added.
However, within the recent official breach, KuCoin’s cold wallets were unaffected, Lyu claimed. Cold crypto wallets aren’t linked to the web and are considered safer than hot cryptocurrency wallets.
Lyu didn’t disclose the actual number of cryptocurrency assets that were stolen but added that KuCoin would release the hacker’s wallet address and an inventory of hacked funds.
Two Ethereum wallets belonging to KuCoin have already transferred over 11k Ethereum, which presently trades at a price of about $350 per coin, to an anonymous wallet address, consistent with data from blockchain explorer Etherscan.
The anonymous wallet address has also received over 150 Ethereum-based tokens worth over $150 Mln, the Etherscan address information reveals.
Over 200 cryptocurrency assets are traded on KuCoin with a combined daily average volume of around $100 Mln, consistent with CoinGecko.
The price of KuCoin’s exchange token KCS fell by 14% to $0.86 USD within an hour earlier today as news of the hack spread on social media.
Kucoin is investigating the hack with global legal enforcement agencies and stolen users’ assets are expected to be recovered “completely” by an insurance fund, Lyu added.