One of the leading cryptocurrency exchanges KuCoin experienced a massive attack. Interestingly, KuCoin is a proclaimed advanced and secure cryptocurrency exchange but the recent hack has pivoted its community’s thoughts. Investors have already begun to think if their money is even safe.
Hackers shifted the money to DeFi exchanges
It seems that KuCoin culprits are new to DeFi as they are moving tokens in DeFi exchanges. The Whale Alert suggests perpetrators are eccentrically rotating intrinsic money. For instance, hackers moved Synthtix tokens worth of thousands of dollars to Uniswap – the biggest DeFi project as per total valued locked (TVL).
On 28th September, hackers concluded another series of transactions rotating looted funds from KuCoin to DeFi giant Uniswap. The data given by Whale Alert indicates that hackers moved 1.2 million USD worth of Synthetix tokens in a batch of four transactions a few days ago.
Such a course of action by these hackers clearly states that they are yet new to how the DeFi sector works and what its perks are. The holders now fret if their holdings will be safe while exchanging. Though, KuCoin is working to strengthen its security measures and develop an intense security wall that will prevent hackers from stealing.
Furthermore, hackers moved $5 million worth SNX tokens to Chainlink to an anonymous wallet. Almost $4.2 million out of the total stolen tokens have been already exchanged into Ether (ETH) through Kyber and Uniswap. The track of transactions was quite visible as analysts at Whale Alert said, out of four ETH addresses, three were from the KuCoin hack.
The founding member of primitive Ventures, Dovey Wan tags the KuCoin hackers as “DeFi noobs” due to their initial stance after concluding the hack. At first, hackers tried to exchange stolen tokens from Binance.
“The hacker who hacked Kucoin is a Defi noob, tried to sell on Binance, and didn’t swap the tainted USDT on Curve,” Wan said.
In Wan’s opinion, DeFi is an easily accessible tool for hackers as its framework is poised of cryptocurrency mixtures.
“All Defi infra are natural mixers with ultra-low slippage […] Hackers with normal IQ will soon figure out. This is not some alpha leak and Defi infra is designed to serve all purposes […] If a hacker can hack a CEX, no point he/she has no idea how to successfully liquidate via DEX.”
After the KuCoin hack, major DeFi and cryptocurrency exchanges are taking precautionary measures to prevent any sort of cyber attack from the hackers. The hack raises questions on KuCoin’s claims of the leading secure cryptocurrency exchange.