KuCoin Hack Update: 11 Crypto Projects Freeze the Stolen Tokens
Over the weekend, KuCoin lost about $275 million in BTC, XRP, BSV, XLM, TRX, stablecoins, ETH, and other ERC-20 tokens in a security breach. As we reported, the cryptocurrency exchange took full responsibility for the hack, obviously, and promised to cover all the losses through its Insurance Fund.
Binance CEO Changpeng Zhao believes this to be an “inside” job given how “incompetent” the hacker is.
I share this view…
(Just my personal view, could be wrong.) https://t.co/eFg6zF77Sn
— CZ Binance (@cz_binance) September 28, 2020
Since then, the exchange has been in touch with the industry partners.
But what's’ even more shocking, yet not surprising, has been the response of the crypto projects to this hack.
KuCoin has released the suspicious address list and asked the related parties to add them to the blocklist. The Crypto project did them even better by replacing the tokens altogether.
The most recent update came from Ampleforth, a stablecoin with an elastic supply that announced today that $14 million AMPL, 10% of its circulating supply, was stolen by KuCoin hackers, has been disabled by upgrading the contract.
“A contract upgrade was quickly deployed to disable transfers from the attacker,” tweeted the AMPL Organization, adding: “All of the stolen AMPL remain locked in full.”
AERGO, the hybrid blockchain project, also found the “fix” today. Out of the 13.3% of the Aergo supply on the exchange, 66.8M AERGO ERC-20 tokens are in the hand of the hacker, for which, AERGO will deploy a new smart contract and migrate AERGO to the new contract.
Tether has also frozen the stolen tokens — they were actually the first ones to take this step, the same day as the hack. Paolo Ardoino, the CTO of Bitfinex and Tether, said the millions worth of USDT tokens have been “successfully frozen.”
Tether is actually infamous for taking such steps, which runs in double digits.
Other projects that made the same move include Velo Labs that will re-deploy and replace each (122 million tokens worth $75.7 million) VELO.
VIDT_Datalink freezes the 14.49 million VIDT tokens (worth about $7.2 million) and Covesting 3.12 million COV tokens (worth about $600K).
Silent Notary has announced that they will re-issue new SNTR and replace 78.9 billion affected SNTR tokens (worth about $90K) along with NOIA Network replacing about 81 million affected NOIA tokens (worth about $5 million) via a new smart contract.
Orion has already completed the Token SWAP of 3.82 million ORN tokens (worth about $9.5 million) and KardiaChain of 525 million KAI tokens (worth about $10.2 million) while Opacity is accelerating the planned Token SWAP.
With these moves, more than 50% of the stolen funds have been frozen by the protocols behind the stolen cryptos.
“If you can freeze it, it isn’t “crypto,” It’s completely fucking centralized,” commented Dan Held, growth lead at crypto exchange Kraken.