KuCoin crypto exchange loses $150m after hackers drain its hot wallets

KuCoin crypto exchange loses $150m after hackers drain its hot wallets

KuCoin confirmed a security breach on September 26, affecting its Bitcoin, Ether, and ERC20 hot wallets, but cryptocurrency prices remained unfazed.

KuCoin, a major cryptocurrency exchange based in Singapore, has confirmed a security breach of its ERC20, Ethereum, and Bitcoin hot wallets. Reportedly, hackers withdrew and stole over $150m worth of crypto and transferred funds to an unknown wallet.

As per Etherscan, KuCoin’s two Ethereum wallets transferred over 11,000 ETHs, which currently was trading at $350, and 150 Ethereum-based tokens were transferred to the hackers’ wallet, which is worth over $150m.

Image: Etherscan (Hackread.com)

The breach occurred on Friday at 19:05 UTC. KuCoin confirmed the incident in a live stream on Saturday, 4:30 UTC. 

The security breach was detected on September 26, and immediately the company initiated a security audit, after which it discovered large withdrawals from its hot wallets.

The digital currency exchange’s CEO, Johnny Lyu, stated that one or more hackers obtained the private keys to KuCoin’s hot wallets and drained funds. 

The exchange quickly transferred the remaining funds to new hot wallets, froze customer withdrawal and deposit systems, and closed the hacked wallets. 

Lyu explained that cold wallets were not affected since these weren’t connected to the internet. Hacker(s) managed to steal different types of token ..