Found the culprit of the KuCoin’s hack
Found the culprit of the KuCoin’s hack
Security

Found the culprit of the KuCoin’s hack

By Alfredo de Candia - 5 Oct 2020

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The CEO and co-founder of KuCoin, Johnny Lyu, announced that he was able to discover the criminal behind the hack that took place on September 26th against the exchange. 

Fortunately, in the meantime it is already possible for some users to make deposits and withdrawals from the platform again. 

These criminals, according to the CEO, have already been identified, although no further information is available at the moment.

The Kucoin’s hack

The criminals had managed to steal almost $300 million in several cryptocurrencies and many ERC20 tokens, but thanks to the intervention of some protocols and platforms in the industry, as well as other centralized exchanges, some of the funds were recovered.

Another part of the funds has been liquidated through decentralized exchanges (DEX), such as Uniswap.

In particular, from the data provided by Elliptic we can see that the funds have been liquidated in this way:

  • 10 million dollars have flowed into Uniswap;
  •  4 million dollars in Kyber Network;
  •  2 million dollars on 1inch;
  • 1.6 million dollars on dex.ag;
  • Half a million dollars on Tokenlon;
  • Only $1.3 million on other centralized exchanges (CEX).

As we have said, the theft involved several ERC20 tokens and in some cases also decentralized finance (DeFi) projects, which partly collaborated to limit the damages of the huge theft.

For example, several projects, such as Orion (ORN) and Opacity (OPQ) decided to swap old tokens into new ones, making the previous ones practically unusable.

Other companies have followed the path of token freezing, such as Covesting (COV), VIDT_Datalink (VIDT) and Ampleforth (AMPL).

From these data we can also learn that true decentralization is still only a mirage, since teams can behave like real centralized platforms, blocking and disabling functions.

Interesting finally the comment by Jameson Lopp, who makes a comparison with what happened with The DAO and the creation of the fork of Ethereum Classic.

 

 

 

Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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