Last week Crypto.IQ reported that KuCoin lost $150 million in a hack, and at the time it was unclear if KuCoin would re-open or if it was going to completely collapse. As of today it appears KuCoin is at least partially re-opening, although the hack was even bigger than originally believed as will be explained in this article.
Chainalysis, a highly reputable blockchain forensics firm, found that $275 million was stolen in the KuCoin hack, making this one of the biggest crypto exchange hacks in history.
Specifically, $10.8 million of Bitcoin (BTC) was stolen, $4 million of Ethereum (ETH) was stolen, $4.3 million of Ripple (XRP) was stolen, $1.2 million of Litecoin (LTC) was stolen, and $1 million of Tether (USDT) was stolen.
By far, ERC-20 tokens and Stellar (XLM) were the hardest hit cryptos on KuCoin, with $147 million of ERC-20 tokens and $87 million of Stellar (XLM) being stolen.
Notably, Chainalysis says that what makes this hack really unique is how the stolen funds were laundered through Decentralized Exchanges (DEXs) like Uniswap and Kyber Network, and since this is the first time that such a large amount of stolen funds has been moved through DEXs, it makes it particularly hard for blockchain forensics to track down the stolen crypto.
The good news is that KuCoin is re-opening deposits and withdrawals for Bitcoin (BTC), Ethereum (ETH), and ERC-20 Tether (USDT) despite the massive losses.
That being said, it is unclear when deposits and withdrawals will re-open for the hardest hit cryptos, which are Stellar (XLM) and ERC-20 tokens, and there is a chance withdrawals will not re-open since the money is simply gone.
KuCoin has experienced one of the biggest crypto hacks in history, and although KuCoin is partially re-opening, it is unknown if the tremendous amounts of stolen ERC-20 tokens and Stellar (XLM) will be replaced. Crypto.IQ will continue to post updates about this situation as it progresses.