KuCoin Restores all funds from the 2020 Security Breach

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Now that the first month of 2021 has passed away, various crypto firms have provided their communities with a review of their previous year and briefed them about their future plans. Few firms were as anticipated as KuCoin, the cryptocurrency exchange that suffered a security breach in September 2020. 

This breach led to a loss of $285 million from the exchange. In an open letter to the community, KuCoin CEO, Johnny Lyu has addressed the issue and the steps that the exchange will be taking. 

The Cause

In the letter, Lyu noted that cryptocurrency exchanges are very careful about their security protocols and call them the ‘sword of Damocles’ that hangs over exchanges. He also explains once the management became conscious of the security breach, they took measures to protect their partners and their customers. Deposits and withdrawals resumed a week after the incident before all the features were restored. 

The majority of the funds that were stolen have been recovered. KuCoin cooperated well with other crypto exchanges, which helped them to recover 78% of the missing funds. Also, the assistance from law enforcement has helped them in the recovery of another 6%. KuCoin and its insurance fund have then recovered the remaining 14% funds. This is something powerful because, earlier, it was not easy to restore the stolen crypto assets. 

It is also remarkable that KuCoin is an influential exchange and the number of customers would be tremendous if the crypto assets were not restored. Lyu also stated KuCoin is working continuously with the authorities and the intelligence has been gathered on the situation. In the letter, Lyu also portrayed a growth in KuCoin’s operations. 

“In 2020, our margin trading volume increased 217% year on year and has supported 33 tokens and 54 trading pairs. Since the start of the year, KuCoin Futures have achieved a stunningly rapid 420% increase in trading volume and a remarkable 670% growth in user numbers. It now supports 17 coins, including USDT-Margined and Coin-Margined Contracts, and Perpetual Futures and Quarterly Delivery Futures,”.

In the future, KuCoin will support the Polkadot Para Chain slots action, as well as new DeFi and NFT trading boards. Lyu also stated that he expects Bitcoin to surpass gold in the coming years and he also has hopes for the Decentralized Finance (DeFi) space. Hence, for the next few years, KuCoin will focus more on the decentralized space, KCS, and finding new gems within the crypto ecosystem. Lyu stated,

“In general, the future strategy of KuCoin will be carried out by two priorities: ‘Find the next crypto gem’ and ‘Empowering KCS’. In order to achieve the former, our intercontinental blockchain project research team will keep up with industry trends to identify more promising projects.” 

Also Read: Visa Partners with First Boulevard to Enable Institutions & Banks to Trade Crypto