KUCOIN exchange announces a security breach

in LeoFinance25 days ago

According to a tweet by Kucoin's official twitter handle on September 26, there has been a security breach on the second largest cryptocurrency exchange (in terms of trading volume) - KuCoin which resulted in an illegal transfer of some volumes of BTC, ERC-20 and other tokens from the exchange to another.

Screenshot_20200927174250~2.png

This situation has caused the security of the KuCoin exchange, its competence as well as the safety of traders' digital assests to be questioned by the exchange users. This I also believe could cause the exchange to lose some users if the issue is not being managed properly and users convinced that measures have been put in place to ensure that such incident doesn't occur anymore. Meanwhile, KuCoin pleads with its users for time to rectify and fix the situation.

Also from the news, over $150 million worth of funds were being stolen by the hackers while the exchange promises to repay affected users. Meanwhile, KuCoin exchange have refused to call this incidence a hack although there are signs that it could be one. Instead, they choose to term it a security breach. Reasons best known to them

Whereas a thorough security audit is ongoing on the KuCoin exchange and in order to handle the present security situation squarely, KuCoin also announced that assests' withdrawals and deposits will not be available for the timebeing until announced otherwise.

This should be a wake up call to other cryptocurrencies exchanges to solidify and increase their security levels to avoid illegal invasion. It is also a lesson to crypto assets holders to split the storage of their assests. If possible, cold wallets should be used as it is more safe compared to hot wallets. I believe it is unsafe to store all your assets in just one wallet. However, we hope to hear from KuCoin soonest.

Posted Using LeoFinance Beta

Sort:  

Just shows we shouldn't be trusing exchanges and why DEX's are a better option, hackers will continue to attack these sites because it is profitable for them, while DEX smart contracts do have bugs having your crypto in your own wallet you have keys to is always a safer option

Posted Using LeoFinance Beta

In all cold wallets are the best, if you ask me

Posted Using LeoFinance Beta

Congratulations @tomlee! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

You have been a buzzy bee and published a post every day of the week

You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word STOP

To support your work, I also upvoted your post!

Do not miss the last post from @hivebuzz:

Hive Power Up Day - Let's grow together!