KuCoin Exchange Announces Recovery of 84% of Stolen Funds
Following a massive hack that occurred back in September, cryptocurrency exchange KuCoin announced that it retrieved 84 percent of the funds stolen from the platform.
KuCoin Making Progress in Recovering Stolen Funds from September Hack
In a tweet on Wednesday (November 11, 2020), KuCoin CEO and co-founder Johnny Lyu revealed that the team was able to recover the majority of the crypto funds stolen from the platform. According to the KuCoin chief, the effort saw a reclaim of 84 percent of stolen funds.
“Latest updates about #KuCoin Security Incident: So far, 84% of the affected assets have been recovered via approaches like on-chain tracking, contract upgrade and judicial recovery. As asked by the law enforcements, we will publish all the details once the case is closed.”
While praising the efforts of people and institutions who supported the exchange during the crisis, Lyu stated that the platform has currently resumed services for 176 crypto tokens. Furthermore, resumption of other assets will commence before November 22, 2020.
The Singapore-based exchange suffered a hack back on September 26, 2020. Initially, attackers reportedly drained $150 million in different cryptocurrencies from the platform’s hot wallet. However, later reports put the amount stolen at about $280 million.
Shortly after the incident, KuCoin launched a safeguard program that helped individuals and institutions affected by security incidents. Although the KuCoin’s hot wallet storage was affected, Lyn stated that assets stored in its cold wallet were untouched.
The KuCoin CEO later in October revealed that the team found the suspects connected to the attack, with the police already involved in the case. Since the incident, the KuCoin team has made progress, with about $236 million out of the hackers’ reach.
Crypto Crime Not as Profitable as Before
Apart from KuCoin, other crypto exchanges have also suffered hacks in 2020. However, the rate of success for such attacks seems to be diminishing as seen from the significant reduction in proceeds from crypto-related criminal activities. Safeguards such as know-your-customer (KYC) and anti-money laundering (AML) laws have contributed to fighting crypto crime.
As previously reported by BTCManager, criminals have only realized $1.8 billion from cryptocurrency hacks, fraud, and theft in the first 10 months of 2020. Of particular note is that this figure means only $400 million has been stolen by cryptocurrency crooks since June 2020.
According to crypto intelligence firm CipherTrace, DeFi scams are now the highest contributor of dirty money to cryptocurrency criminals. Utilizing attack vectors like rug pulls and malicious contract codes written to drain liquidity pools, these con artists are preying on the hype surrounding the novel market segment to fleece unsuspecting victims.