KuCoin hack is a first of its kind in which hackers have laundered money in large amounts through a decentralized exchange. The cybercriminals have adopted the most advanced techniques to steal capital from financial institutions.
In the KuCoin hack, more than $200 million were stolen by hackers, and most of the coins are ERC20, which can be laundered via DeFi protocols. On Sep.26, KuCoin CEO reported the community that the hot wallets of the exchange were subjected to a security breach, which resulted in the loss of millions of coins.
Recovering of Stolen Funds
KuCoin media manager Charlie Cai commented over the recent cyber-attack that the team of the exchange is working with other security firms to recover funds.
“Following the incident, KuCoin is acting quickly and transparently to deal with it. We are trying our best to mitigate the impact of the incident by working with many blockchain projects, security firms and crypto exchanges,” Cai stated while talking a new outlet.
According to reports by many crypto security firms, more than $200 million have been stolen from the hot wallets of the exchange. Multiple coins have been stolen, but the hack did not influence much on the price values of cryptocurrencies. According to Cai, the team has secured up to $130 million funds and is trying to recover more funds as possible. He further claimed that Tether had frozen nearly $22 million USDT, and VELO tokens would be invalidated by the company. “The 122 million VELO tokens (about $75.7 million) that were affected will be invalidated,” he added.
“First High Profile Case of a DEX”
Chief analyst at crypto-security firm CipherTrace, John Jefferies, explained hackers had chosen Uniswap because a decentralized exchange cannot freeze funds.
“This was the first high profile case of a DEX, Uniswap, being used as a money mixer. Unlike centralized exchanges, a DEX can’t freeze funds — only specific projects can. Another significant impact here is that the theft of the tokens directly impacted the firms of these stolen tokens, such as Crypterium and Tether because the hack included CRPT tokens and Tether on both EOS and Ethereum blockchains,” he said while talking to a crypto news agency.