The Cryptocurrency exchange, KuCoin’s official Twitter account was hacked in the early hours of April 24, resulting in asset losses of nearly 22,638 USDT.
On April 24, KuCoin took to Twitter to reveal its Twitter handle was compromised for 45 minutes, leading to asset losses for multiple users. The Seychelles-based cryptocurrency exchange identified 22 transactions that interacted with the fraudulent tweets resulting in the loss.
However, as soon as the exploit was identified, KuCoin took proactive measures to prevent more users from being attacked. The crypto platform further specified that it will implement additional security measures to strengthen its social media accounts and prevent similar occurrences in the future.
1/ The @kucoincom handle was compromised for about 45 mins from 00:00 Apr 24 (UTC+2). A fake activity was posted and unfortunately led to asset losses for several users. KuCoin will fully reimburse all verified asset losses caused by the social media breach and the fake activity.
— KUCOIN (@kucoincom) April 24, 2023
Only Twitter Account Compromised
In addition, KuCoin urged users to refrain from opening any links that seem to impersonate the exchange. It also reassured that the platform will fully reimburse all verified asset losses caused by the social media breach and the fake activity. Although Kucoin’s Twitter account was compromised, it claims assets on the exchange remain secure. KuCoin added,
“Please note that only KuCoin’s Twitter account was compromised in this incident. We acted immediately to retrieve control of the account from official Twitter support after the incident occurred. We want to reassure you that your assets on KuCoin are secure.”
2/ Please note that ONLY KuCoin's Twitter account was compromised in this incident. We acted immediately to retrieve control of the account from official Twitter support after the incident occurred. We want to reassure you that your assets on KuCoin are secure.
— KUCOIN (@kucoincom) April 24, 2023
This is not the first time malicious entities have targeted the crypto platform. In September 2020, KuCoin lost more than $280 million in a security breach. The KuCoin team explained that the hack was made because of a leakage of the private keys of KuCoin hot wallets.
The attacker drained several digital tokens such as Bitcoin (BTC), Ethereum (ETH), XRP, and Tether (USDT) among others. However, KuCoin managed to recover almost 84% of the funds that were stolen.
With great support from our partners of the industry, another $64 million in assets are now out of the control of the suspicious addresses, bringing the total value to $204 million since Oct 1.
— Johnny_KuCoin (@lyu_johnny) October 3, 2020
KuCoin Faces Regulatory Heat
Crypto-related hacks have experienced a steep incline over recent years. In the first quarter of 2023, hackers accessed over $320 million in the crypto industry through a variety of incidents. Out of the funds stolen within the quarter, over $31 million was lost to 90 exit scams, while more than $222 million was lost in 52 flash loan and oracle manipulation exploits.
Meanwhile, KuCoin has been facing a lot of heat in the United States over regulatory policies. In March, Letitia James, the attorney general of New York, initiated a legal action against the exchange claiming KuCoin offered several digital tokens, including Terra (LUNA), TerraUSD (UST), and Ethereum (ETH), that are regarded as commodities or securities. The attorney also asserted that its lending product, KuCoin Earn, offered unregistered securities.
