FOLLOW US

Financial Investigations October 3, 2020 4 mins read

KuCoin Global found the hackers who stole $281 million in cryptocurrencies

Financial Investigations ı By Jackie Allen

0 Comments

bitcoin hack

Johnny Lyu, CEO of the KuCoin Global announced in a live stream that the platform has identified the suspects of the massive hack of its crypto-exchange on Sept 26.

The cryptocurrency exchange asked international law enforcement, involved in the investigation, to take action against the hackers.

Mr. Lyu followed up with a tweeted today claiming, "After a thorough investigation, we have found the suspects of the 9.26 #KuCoin Security Incident with substantial proof, at hand. Law enforcement officials and police are officially involved to take action."

KuCoin moved immediately to establish the Special Task Force using internal security experts and outside industry professionals. Mr. Lyu believes, “ With top-notch tech capability, we have carried out a thorough investigation against the hacker’s attack path, and inch-by-inch search, now we have obtained substantial clues.”

KuCoin is aggressive in recovering stolen crypto assets

In his first live stream on September 30,  Mr. Lyu acknowledged that KuCoin’s crypto team had just turned 3 years old. Despite the fact, the team is vigilant on all security-related issues that had been compromised. He added that “we couldn’t dodge the cruelest coming-of-age ceremony that every predecessor used to embrace."

As of October 1, KuCoin managed to recover another $64 million in stolen assets from suspicious addresses. Immediately after the hack, crypto worked to freeze most of the stolen assets. Teams updated their blockchain to make this happen.

The KuCoin Special Task Force, the Bitcoin community, and partners in the industry moved quickly to recover the coins. To-date the total value of recovered assets is $204 million and counting. Mr. Lyu said of the amount, 72% of the total hack is now completely "out of the control of the suspicious addresses."

Among the recovered and secured were 122 million VELO tokens (about $75.7 million),  3.82 million ORN tokens (about $9.5 million), and 525 million KAI tokens (about $10.2 million).

At least $13 million of the hacked crypto was discovered through their tracking process and has been sold on decentralized exchanges.

KuCoin has enough money to cover losses

KuCoin said that the hackers were able to gain access to the exchange wallets with a leaked private key.  The crypto exchange assured its users that it has enough money in the bank to cover any of its losses.

The KuCoin hack is the first major case of a decentralized exchange being used to launder funds. It’s estimated that up to $281 million in assets were stolen. But some analysts fear that more tokens were compromised.

After the attack, KuCoin paused deposits and withdrawals, which are now opening back up.  Mr. Lyu said the crypto exchange is slowly beginning to return to “full functionality.” 

Some of the services KuCoin provides are not affected by the hack including spot trading, margin trading, futures trading, P2P Fiat trading, red envelope function, Pool-X staking, Pool-X liquidity trading platform, Kratos voting and governance function, and the Instant Exchange function. All KuCoin activities will proceed as planned, and any earned rewards and prizes will be released to users, as normal.

Currently, KuCoin supports deposits and withdrawals for 31 tokens. Bitcoin (BTC), Ethereum (ETH), and the US dollar-pegged stable coin, and Tether are still not among those open but should be soon.

KuCoin reassured its users that they are perfectly protected by its insurance from asset losses while the project itself avoided a disastrous secondary market tumble.

The Safeguard Program

KuCoin is launching a new initiative called the “Safeguard Program" to provide comprehensive protection and support for individuals and institutions who are affected by "security incidents" on the exchange.  The program includes but is not limited to assistance with technical support, evidence retention, and asset confirmation.

KuCoin sincerely hopes “more and more institutions, experts, and tech teams” join its newly minted Safeguard Program, to fight side-by-side with them against future cybersecurity breach.

Mr. Lyu claims that experiencing the “darkest hours” made him “thankful and relieved for having a solid team that shows impressive strength in risk management practice, the capability of quick response and staying calm, as well as, firm belief in protecting user assets, by all means.”

In a statement, KuCoin believes that teams must continue to be the greatest problem solvers to protect the assets of community users. He added that the incident has “significantly strengthened our faith in the crypto community, and pushed us to re-think the method of solving trust issues in a trustless world.”

Watch the live stream below:

----------------------------------------

Have a story you want USA Herald to cover? Submit a tip here and if we think it's newsworthy, we'll follow up on it.

Want to contribute a story? We also accept article submissions -- check out our writer's guidelines here.

Previous Article

DOJ charges 345 people involve in more than $6 billion healthcare fraud

Read More
3324 Posts

Jackie Allen

Jackie is a freelance journalist and technology geek. She worked as a telecom project director for AT&T and BellSouth. Before joining the USA Herald she has written books, articles, blogs and whitepapers. Her clients include Samsung and other technology companies.

Discussion

No comments yet. Be the first to join the discussion!

Don’t Miss It
America September 16, 2026
CLARITY Act Stalls In Senate As Crypto Ethics Fight Deepens
By – Samuel Lopez
America September 15, 2026
NFP Acquires Minnesota’s Moores in Strategic Insurance Expansion
By – Tyler Brooks
America September 15, 2026
Adidas $5M Call Center Breach Sparks Insurance Fight Over Coverage
By – Tyler Brooks
America September 15, 2026
Oracle 6 AM Layoff Email Blindsides Workers Amid AI Spending Surge
By – Rihem Akkouche
America September 15, 2026
Crypto Bill Failed to Clear Senate in Blow to Digital Asset Industry
By – Rihem Akkouche
America September 15, 2026
Grab Holdings to Buy 60% of Atome in $1.49 Billion Fintech Power Play
By – Rihem Akkouche
America September 15, 2026
Electra Therapeutics’ $325M IPO Bets Big on Precision Immune Therapy
By – Rihem Akkouche
America September 15, 2026
Robinhood Engineers Crypto-Futures Insider Charges Reveal…

Some information is meant to sit locked in a company’s…

By – Rihem Akkouche
America September 15, 2026
State Farm Sends Cash Back to…

Key Takeaways State Farm Mutual is distributing a record $5…

By – Samuel Lopez
America September 15, 2026
Why the Pentagon’s Space Weapons Admission…

Key Takeaways The Outer Space Treaty bans nuclear weapons and…

By – Samuel Lopez
America September 15, 2026
Massachusetts AG Joins 21-State Coalition Suing…

Key Takeaways Massachusetts Attorney General Andrea Campbell has joined attorneys…

By – Samuel Lopez
America September 15, 2026
Baldwin Insurance Group Goes Private in…

Key Takeaways Baldwin Insurance Group shares surged nearly 8% after…

By – Samuel Lopez
America September 15, 2026
Pentagon Breaks Decades of Silence, Confirms…

Key Takeaways Air Force Secretary Troy Meink has confirmed, for…

By – Samuel Lopez
America September 15, 2026
Pentagon Breaks Decades of Silence, Confirms…

Key Takeaways Air Force Secretary Troy Meink has confirmed, for…

By – Samuel Lopez
America September 14, 2026
NASA Responds to Presidential Directive, Targeting…

Key Takeaways NASA is moving quickly to design a new…

By – Samuel Lopez
America September 14, 2026
ESA Scientists Can Now Predict Where…

Key Takeaways ESA’s NEO Coordination Centre has built a new…

By – Samuel Lopez
America September 14, 2026
IRS Micro Captive Rules Face Sixth…

Some legal battles don’t end with a single ruling —…

By – Rihem Akkouche
America September 14, 2026
EPA Planet Warming Limits Removal Sparks…

Regulations built over years can sometimes be dismantled in a…

By – Tyler Brooks
America September 14, 2026
Thryv to Sell Print Directories, Betting…

Every company reaches a fork in the road where its…

By – Tyler Brooks
And More September 14, 2026
Sydney Sweeney and Scooter Braun Celebrate…

Sydney Sweeney celebrated her 29th birthday with a public declaration…

By – Jackie Allen
America September 13, 2026
AI Whistleblowers:  Warnings  Coming From Inside…

AI Whistleblowers are increasingly sounding the alarm about the speed…

By – Jackie Allen
America September 13, 2026
Serena Williams’ Daughters Make History as…

Serena Williams has built one of the most decorated careers…

By – Jackie Allen
America September 13, 2026
KJ Biermann Faces Seven Felony Charges…

KJ Biermann, the 15-year-old son of “Real Housewives of Atlanta”…

By – Jackie Allen
America September 13, 2026
Team USA Reaches Women’s Basketball World…

BERLIN — Team USA advanced to the FIBA Women’s Basketball…

By – Jackie Allen
America September 13, 2026
In-House Attorneys’ Group Takes Rival to…

Key Takeaways The Association of Corporate Counsel has filed suit…

By – Samuel Lopez
America September 14, 2026
TMZ Ties Itself to the Hayden…

Key Takeaways TMZ is reporting that law enforcement sources believe…

By – Samuel Lopez
America September 13, 2026
Lawyers Clash Over 12.5% Cut of…

Key Takeaways Class attorneys behind the $2.8 billion Blue Cross…

By – Samuel Lopez
America September 13, 2026
New Mexico Lawyer Fined $5,000 After…

Key Takeaways A New Mexico defense attorney was held in…

By – Samuel Lopez
America September 13, 2026
China Expands Legal Reach Abroad as…

3 Key Takeaways China is expanding laws that can reach…

By – Samuel Lopez
America September 13, 2026
Bayer’s $7.25 Billion Roundup Settlement Faces…

Key Takeaways Bayer’s Monsanto unit will ask a Missouri judge…

By – Samuel Lopez
America September 13, 2026
Tylenol Maker and Pharmacy Chains Ask…

By Samuel López | USA Herald Tylenol maker Kenvue and…

By – Samuel Lopez
America September 13, 2026
Tylenol Maker and Pharmacy Chains Ask…

By Samuel López | USA Herald Tylenol maker Kenvue and…

By – Samuel Lopez
America September 13, 2026
Lawyers Are Getting Burned by AI…

Key Takeaways Courts across the country have been sanctioning lawyers…

By – Samuel Lopez
America September 10, 2026
41% of Lawyers Say Legal Careers…

Key Takeaways More than 41% of surveyed lawyers say the…

By – Samuel Lopez
America September 10, 2026
Anthropic Says It Caught Scientists Trying…

Key Takeaways Anthropic’s newest threat intelligence report details five case…

By – Samuel Lopez
America September 10, 2026
Wrongful Death Lawsuit Against Energy Drink…

Key takeaways The latest reported order paused the family’s lawsuit…

By – Samuel Lopez
America September 9, 2026
Ambient AI Could Be the Next…

Key Takeaways Ambient AI can turn conversations into draft records,…

By – Samuel Lopez
America September 11, 2026
Bears and RB Swift $33.75M Extension…

Sometimes the best deals get done before the clock even…

By – Tyler Brooks
America September 11, 2026
Skywatchers: Moonshadow Creates Dramatic Blood Moon…

A Moonshadow transformed the night sky Aug. 27 as the…

By – Jackie Allen
America September 6, 2026
Travis Kelce-Backed Club Car Wash Faces…

By Samuel López | USA Herald A fast-growing car wash…

By – Samuel Lopez
America September 6, 2026
‘DWTS’ Gleb Savchenko Lists $1.4 Million…

By Samuel López | USA Herald Factual Background Gleb Savchenko…

By – Samuel Lopez
America September 4, 2026
Trump Calls Tiger Woods DUI Plea…

In This Report Tiger Woods accepted reduced charges and surrendered…

By – Samuel Lopez
America September 2, 2026
Clippers Fined $30M as NBA Drops…

A year-long investigation just landed on the Los Angeles Clippers…

By – Rihem Akkouche

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter