KuCoin intends to reimburse 100% of losses to users affected by the hack

The cryptocurrency exchange KuCoin said it would in the near term fully reimburse losses to users affected by the September 26 hack. KuCoin will use funds from the insurance fund created in 2018 to safeguard traders’ assets.

According to KuCoin, hackers stole about $200 million from the exchange’s hot wallets. The majority of the attackers withdrew BTC, ETH and ERC-20 tokens. After the hack, the exchange stopped using the compromised wallets. KuCoin notes that funds held in cold wallets remain secure.

As a result of the hack, the exchange suspended deposits and withdrawals. For some tokens these functions have already been restored; for others, the ability to deposit and withdraw will be available in the near future. Trading on the exchange remains available.

KuCoin is conducting the investigation into the hack in collaboration with cybersecurity experts, crypto exchanges, blockchain projects and law enforcement agencies. According to KuCoin’s CEO Johnny Lu, to track the stolen assets, KuCoin is cooperating with Huobi, Binance, OKEx, BitMax, Bybit and other major crypto exchanges.

“We have already managed to move ten coins with a total value of $140 million out from under the control of suspicious addresses. Some of these funds have been frozen, some returned to users. Going forward, we will strengthen KuCoin’s security by leveraging leading cybersecurity companies,” said KuCoin.

Following the hack, KuCoin launched the project “Protection Programme”. Its aim is to inform clients and partners of the exchange about the investigation into the hack in real time. On the project page, users can consult with KuCoin’s specialists and receive technical support.

Updates on the investigation can also be followed on the KuCoin site. The exchange regularly updates information.

In mid-September KuCoin entered into a strategic partnership with the crypto exchange Poloniex for joint research and development of the Bitcoin industry.

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