The Singapore-headquartered digital asset exchange KuCoin suffered, on Friday, a hacker attack that led to large withdrawals of Bitcoin (BTC) and Ethereum (ETH) tokens worth over $150 million. In the live-stream later, the first reaction of KuCoin was to immediately transfer the left digital assets from the old hot wallets into new ones. Ocean Protocol took the situation into their hands.
What do we know about KuCoin Hack?
Though over 200 cryptocurrency assets trade daily, KuCoin released a list of BTC, bitcoin SV (BSV), ETH, LTC, XRP, Stellar Lumens (XLM), Tron (TRX), and Tether (USDT) wallet addresses with the transferred stolen funds. KuCoin owns hot and cold cryptocurrency wallets. The difference is that cold wallets not connected to the internet are considered more secure. Well, the hackers couldn’t touch the cold ones? KuCoin’s exchange token KCS’ price fell by 14% to $0.86 within an hour on Saturday as news of the security breach spread on social media. While KuCoin is investigating the hack with international Law Enforcement, they assure that the stolen customer money will be “covered completely” by an insurance fund.
Ocean PRotocol's actions are a hand of help.
Only a day later, Ocean Protocol announced it had migrated from its old token address to a new one to prevent the KuCoin hacker’s attempts to offload 21 million OCEAN tokens worth some $8.6 million. The new smart contract is safer and will be held in trust in Singapore for persons affected by the theft. It will allocate the stolen token balances to another address.
Moving contract addresses is a smart move to blacklist the hacker’s stash of OCEAN tokens. In their case, the hacker offloaded some 330,000 OCEAN tokens worth $120,000, according to the Blockhead of research Larry Cermak.
Ocean Protocol owns a liquid supply of 587,622,921 OCEAN tokens and a maximum supply of 1.4 billion OCEAN. The hacker succeeded in selling the stolen OCEAN tokens in tranches of 10,000 coins. OCEAN’s price also fell 8% from $0.399 per coin to $0.365.
After thorough investigations, the hacker swapped stolen ERC-20 tokens for ether (ETH), with a little facilitation due to a novel liquidity model that reduces price slippage by Uniswap.
Even a full refund, the KuCoin Singapore-headquartered digital asset exchange, had a massive hit last weekend. It just shows one more time that everyone can become a victim, and the decentralized system needs permanent updates and improvements to keep the assets safe.