KuCoin is a relatively popular crypto exchange with tens of millions of USD of trading volume per day, and in particular KuCoin is one of the last venues where users from the United States can trade crypto anonymously following Binance banning United States users last year. However, KuCoin has apparently just been hacked for $150 million, and what happens next is unclear.
The CEO of KuCoin, Johny Lyu, says that the hacked funds will be covered by KuCoin’s insurance fund, and that the $150 million was only a small part of KuCoin’s assets. However, these claims have not been verified, and it seems unlikely that $150 million is a small fraction of KuCoin’s assets, since KuCoin only has tens of millions of dollars of trading volume per day.
It seems KuCoin is betting on recovering the stolen funds via working with other exchanges, and Bitfinex and Tether have so far seized $33 million in connection to the hacked funds, and will presumably return the money to KuCoin.
Further, KuCoin is working with all of the other big exchanges to recover the hacked funds via blockchain forensics.
All things considered, apparently KuCoin’s plan is to recover the stolen money, and they seem to have had some success so far, but it remains to be seen if they will recover more than the $33 million, and how much of an insurance fund they have to cover the rest of the missing money.
Zooming out, KuCoin is quite shady, with an unknown location and all sorts of lawsuits and internal ‘restructuring’ over the last year, which makes this hacking situation even more volatile, if not fishy.
For now KuCoin users are reporting trouble withdrawing funds, and it remains to be seen if KuCoin will recover from this incident, or if they will join the long list of exchanges that have been killed by hackers.