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
3319 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 11, 2026
Tenet Health 1,500 Layoffs Ripple Across North Texas Job Market
By – Rihem Akkouche
America September 11, 2026
Bears and RB Swift $33.75M Extension Locks In Backfield Anchor
By – Tyler Brooks
America September 11, 2026
Josh Hawley Opens OpenAI Investigation Over…

Key Takeaways Josh Hawley is demanding answers and internal records…

By – Samuel Lopez
America September 11, 2026
Congress Has Seen the Evidence on…

Key Takeaways Lawmakers with security clearances, including Rep. Nancy Mace,…

By – Samuel Lopez
Science & Technology September 11, 2026
iPhone Duo Finally Gives Apple Fans…

CUPERTINO, Calif. — iPhone Duo will bring a folding screen…

By – Michallie Harrison
America September 11, 2026
Mexican Food Company Announces California Layoffs…

Key Takeaways Ruiz Foods is cutting 176 jobs at its…

By – Samuel Lopez
America September 11, 2026
Sam Bankman-Fried Seeks Supreme Court Review…

By Samuel López | USA Herald Sam Bankman-Fried is taking…

By – Samuel Lopez
America September 11, 2026
5th Circuit Vacates $125M Award Over…

Key Takeaways A divided Fifth Circuit upheld relief from a…

By – Samuel Lopez
America September 11, 2026
5th Circuit Vacates $125M Award Over…

Key Takeaways A divided Fifth Circuit upheld relief from a…

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
Trump Promises $5,000 Dividend Checks if…

By Samuel López | USA Herald DALLAS — President Donald…

By – Samuel Lopez
America September 10, 2026
Hawaii Couple Sentenced to Prison After…

Key Takeaways Scott Hawver received 16 months in prison, and…

By – Samuel Lopez
America September 10, 2026
Flock Safety Cracks Down on Police…

Flock Safety is introducing mandatory safeguards for its automated license-plate…

By – Jackie Allen
America September 10, 2026
Massachusetts Judge Publicly Reprimanded Over 2018…

Key Takeaways The Massachusetts Supreme Judicial Court publicly reprimanded Judge…

By – Samuel Lopez
America September 10, 2026
OpenAI Cybersecurity Under Scrutiny After AI…

OpenAI cybersecurity concerns are growing after researchers reported that a…

By – Jackie Allen
America September 9, 2026
To Catch a Predator: Robert Pattinson…

The phrase Catch a Predator became synonymous with one of…

By – Jackie Allen
America September 8, 2026
Trump-a-Palooza: Republicans Put Trump at Center…

DALLAS — Trump-a-Palooza is bringing Republicans from across the country…

By – Jackie Allen
America September 8, 2026
Iranian Twins Face Death Sentence and…

Iranian twins Taraneh and Romina Rahimi, 20, are facing drastically…

By – Jackie Allen
America September 8, 2026
AI Amnesia: Bigger Diffusion Models May…

AI Amnesia may be an emerging problem for researchers, artists…

By – Jackie Allen
America September 8, 2026
Bats Invade Homes in New York…

New York is experiencing a surge in bat encounters this…

By – Jackie Allen
America September 10, 2026
PGR Filed for Bankruptcy as Solar…

Solar power promises endless energy from an endless source —…

By – Rihem Akkouche
America September 10, 2026
Frazier $1.1B Public Fund Signals Fresh…

When investors line up not just to meet a funding…

By – Tyler Brooks
America September 10, 2026
Enbridge-Tallgrass Crude Oil Deal Locks In…

In the world of energy infrastructure, growth often looks less…

By – Tyler Brooks
America September 10, 2026
Brian Duckworth Death Silences a Voice…

Some voices carry further than the rooms they’re born in.…

By – Tyler Brooks
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 10, 2026
Missing Scientists and Defense Personnel Continue…

Key takeaways Four people central to earlier coverage remain publicly…

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 5, 2026
Georgian National Indicted in Money Laundering…

By Samuel López | USA Herald A federal grand jury…

By – Samuel Lopez
America September 1, 2026
DOJ Drops Hammer On Kansas School…

By Samuel López | USA Herald The U.S. Department of…

By – Samuel Lopez
America August 28, 2026
CVS Ordered to Answer for AI-Fueled…

Case at a Glance A Manhattan federal judge has ruled…

By – Samuel Lopez
Breaking News August 27, 2026
Sacred Horse Year Pilgrimage Turns Catastrophic…

A Disaster Unfolding in Real Time, Legal and Diplomatic Fallout…

By – Samuel Lopez
America August 27, 2026
When Your Chatbot Becomes the Star…

Legal Analysis: How AI Conversations Are Reshaping the Rules of…

By – Samuel Lopez
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
America August 26, 2026
Tupac Shakur Murder Trial Moves to…

The Tupac Shakur murder trial will resume Thursday in Las…

By – Jackie Allen
America August 21, 2026
World Cup Brawl Leads to Major…

EAST RUTHERFORD, N.J. — The World Cup final between Spain…

By – Jackie Allen

No posts found.

No posts found.

Signup for the USA Herald
exclusive Newsletter