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KuCoin recovers 84% of Stolen Funds

KuCoin exchange takes back 84% of stolen funds from hackers.

Johnny Lyu, KuCoin exchange CEO stated that the exchange was able to get back only 84% of the funds that the hackers got away with last September when it was hacked. Lyu disclosed this is in a letter published last Thursday.

The CEO stated that the exchange managed to get 78 percent of the stolen funds initially and later got another 6% from the hacked funds with the help of law enforcement and cooperation with other exchange firms.

To sum it all up, KuCoin Exchange tracked back $239.45 million while the hackers escaped with $45.5 million.

How the hackers attacked KuCoin?

Lyu revealed that the hackers managed to gain possession of many private keys from the KuCoin hot wallet through an Advanced Persistent Threat (APT) attack. The attack enabled the hackers to establish a long term presence on the network to steal sensitive data after damaging internal networks, granting them control of the private keys.

The KuCoin Exchange CEO asserted that the firm will invest more in security. He stated that they had already upgraded their entire system since the hack and restricted their security team.

In the past, the CEO had also claimed that there was evidence of who the hackers were and said the firm hasn’t stopped tracking them.

KuCoin exchange hack The exchange was hacked on September 25, 2020, like Bitcoin, ERC-20, and many other tokens on the platform have been transferred out of the exchange.

But the firm stated that only its hot wallets were hit, and its cold wallets were safe from any breaches. They also assured the users that their insurance fund was going to cover any losses the users suffered.

The firm didn’t immediately realize that it was it. Users initially complained about withdrawal issues. After that, the firm’s admins also started to experience system issues. They realized that the probable hack that occurred when they announced transactions were only pending rather than complete, and $510 million worth of token was moved to other addresses.

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