Singapore-based cryptocurrency exchange KuCoin discloses hack that emptied its hot wallets, with the minimum loss currently estimated at $150M

ZDNet 2020-09-28 Catalin Cimpanu

Context & Ripple Effects

KuCoin's disclosure lands in a long line of exchange hot-wallet failures: Hong Kong's Bitfinex lost 120K bitcoins in 2016, Japan's Zaif was hit the same way in 2018, and a year after KuCoin, BitMart would repeat almost exactly this story — Ethereum-adjacent hot wallets emptied for roughly $150M (BitMart's near-identical breach). The pattern is the point: same attack surface, same nine-figure outcome, different logo.

What makes KuCoin notable within that arc is scale and geography — at a $150M minimum it matches the largest loss in the corpus, and it puts Singapore-domiciled exchanges squarely in the blast radius, years before BingX's 2024 hot-wallet hack showed the city-state's venues were still getting hit.

First-order effects

KuCoin's users face direct exposure, with at least $150M drained from hot wallets and the true total still uncounted — depositors bear the loss risk while the exchange scrambles to contain withdrawals and trace funds.

Second-order effects

Thieves dumping stolen coins pressures the affected token markets — the corpus precedent is Bitfinex, where bitcoin dropped almost 20% in the aftermath of its own hack.

Third-order effects

If every few years produces another nine-figure hot-wallet drain, custody design itself becomes the industry's regulatory flashpoint: exchanges pushed toward cold-storage defaults, third-party custodians, and insurance rather than self-managed hot wallets.

The trend: Hot-wallet compromises keep producing nine-figure exchange losses across jurisdictions and eras — from Bitfinex and Zaif through KuCoin, BitMart, and BingX — making custody architecture, not any single exchange, the recurring failure point.

Discussion

@kucoincom Kucoin on x
The Latest Updates about #KuCoin Security Incident: ✅ $ORN Token SWAP completed, trading available now ✅ $KAI Token SWAP completed ✅ $NOIA Token SWAP completed ✅ $OPQ will accelerate the planned Token SWAP We will continuously update the progress: https://kucoin.com/... https://t…
@bolt_global @bolt_global on x
⚡️BOLT Update regarding the @kucoincom Incident⚡️ The BOLT Tokens have not been affected by KuCoin's latest Security Incident. The latest updates about the KuCoin security incident - continually updated via: https://www.kucoin.com/... #BOLT $BOLT #Community
@richardbyworth Richard Byworth on x
When we built @EQUOS_io we focused on core principles, one being: trust & security - we were told “security isn't sexy”. Security doesn't matter until it does... @DigivaultGlobal built by government security specialists https://www.coindesk.com/...
@bpsaa_official Bpsaa on x
It was only a matter of time until the next centralized exchange was hacked, and this time for 150m 😮 Fortunately we're seeing huge volume/UI improvements with DEXs like @UniswapProtocol & @PolarityEx🤑👌 https://www.coindesk.com/...
@matt_odell Matt Odell on x
Not your keys, not your coins. Not distributed, not your coins. (1) https://tftc.io/... (2) https://decrypt.co/... https://twitter.com/...
@petermccormack Peter McCormack on x
Remember Defi? https://twitter.com/...
@mrhodl Mr.Hodl on x
This is how all altcoins work in general. Including monero, litecoin and ripples. https://twitter.com/...
@alex_danco Alex Danco on x
It's all decentralized until the minute things to wrong and you have to freeze some tokens and clean up the mess, at which point the project never was and never claimed to be decentralized https://twitter.com/...
@chad_alt @chad_alt on x
recap: only a small portion of funds (in hot wallet) affected, cold-wallets untouched, insurance fund will cover any user funds losses we'll see how it shakes out, bit this their line atm https://twitter.com/...
@kucoincom Kucoin on x
The Latest Updates about #KuCoin Security Incident ✅ @VIDT_Datalink will freeze the $VIDT that were transferred to the suspicious address ✅ @SilentNotary will re-issue new $SNTR, and replace all affected tokens We will continuously update the progress: https://kucoin.com/... http…
@mycrypto @mycrypto on x
UPDATE FROM @KUCOINCOM: “We detected some large withdrawals since September 26, 2020 at 03:05:37 (UTC+8). Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.” https://www.kucoin.com/...
@cryptorank_io CryptoRank Platfrom on x
📣 Good news! According to the recent post of @Kucoincom any user fund affected by the last incident will be covered completely by Kucoin and its insurance fund.💰 👉 https://www.kucoin.com/... https://twitter.com/...
@lukso_io Lukso on x
. @kucoincom is actively working in controlling the damage. The KC team informed us: 1. The funds affected contain a small part of their total assets holdings 2. If any user fund is affected by this incident, they will be covered completely by KuCoin and the insurance fund https:…
@akropolisio Akropolis on x
In response to the recent @kucoincom Security incident, we paused all the transfers of $AKRO. More updates to follow shortly. Don't try to transfer tokens or swap on DEXes. CEXes trading working fine. https://twitter.com/...
@kucoincom Kucoin on x
In response to the recent KuCoin Security Incident, KuCoin Global CEO Johnny Lyu @lyu_johnny hosted a livestream at 12:30 (UTC+8) on September 26, 2020, and announced more updates regarding the incident. Read the full recap of the livestream here: https://www.kucoin.com/... https…
@ourielohayon Ouriel Ohayon on x
So the promised refund seems to be only in the cold wallet. Not the hot wallet (where the hack happened). Crypto Insurances (if they have one) typically cover only cold wallets. That's what “we are insured” usually means In other terms. You are in trouble https://twitter.com/...
@250smurf Taylor Kennedy on x
As long as there are locks, there will be people trying to pick them. 👉Hardware Wallets (I like Ledger Nano), MetaMask, and safe practices. Take the time to learn them. The threats are real and out there - it's on you to keep your funds SAFU. https://decrypt.co/...
@dgwbirch @dgwbirch on x
Help! I want my anonymous untraceable electronic money back part 97: KuCoin https://decrypt.co/... hat tip @chainyoda
@rubenmerre Ruben Merre on x
Kucoin, the 6th most secure exchange in the world according to @cer_live, has just been hacked for $150M. We're heading into 2021, yet exchange hacks & security remain a huge issue. If you think you're safe, think again. Get a #coldwallet! #OwnYourAssets https://decrypt.co/...
@panama_tj Panama Crypto on x
That took long, so far exchanges have not dropped the ball on security on 2020 until now. Ugly duck Kucoin got hacked. https://decrypt.co/... https://twitter.com/...

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