After a hack took place at the end of last month, the cryptocurrency exchange KuCoin resumes operations. But there is no reason to be happy.
In an updatethe KuCoin team announced that a security upgrade has been completed. Withdrawals and deposits of Bitcoin (BTC), Ethereum (ETH) and ERC20-USDT are possible again.
Trade Bitcoin, Ethereum, Ripple, IOTA and the most famous cryptocurrencies (CFD) securely on Plus500
Why Plus500? Leading CFD trading platform; 40,000 EUR demo account; Mobile trading app; strong lever; large selection of different financial products (cryptocurrencies, gold stocks, commodities, ETFs, forex, indices).
However, there are still some restrictions. TRC20-USDT and EOS-USDT are depositable but not withdrawable. It is still not possible to deposit and withdraw OMNI-USDT.
KuCoin regularly publishes updates for trading cryptocurrencies and tokens on Twitter. The service is currently available again for 70 crypto projects.
By cooperating with KuCoin with crypto projects, a large part of the hacked cryptocurrencies and tokens could either be frozen or devalued. It is therefore no longer possible to sell them on the market.
Despite the drastic measures for which – some crypto projects were criticized for reasons of centralization – the hackers were able to launder 13 million US dollars through decentralized exchanges (DEX) alone . Since these exchanges are not subordinate to any authority, they are beyond any control and offer an almost perfect environment for money laundering activities.
It was announced that KuCoin can compensate for the damage, but so far there is no evidence of this.
While much of the hacked money has been found, the $ 64 million plus the $ 13 million that has already been „laundered“ is still an enormous sum.
Who are the perpetrators and what’s next?
According to a tweet from Johnny Lyu, the CEO of KuCoin, the perpetrators of the hack are known and have been identified based on the traces left behind. KuCoin also published a list of suspicious addresses associated with the hack.
However, this information is difficult to verify. Cases from the past have shown again and again that it is hardly possible to catch hackers from crypto exchanges.
The case of Cryptopia, for example, has recently shown that centralized exchanges can, in the worst case, be driven into bankruptcy by hacks.
So some of the recent statements made by the KuCoin team could simply be used to restore customer confidence. While the latest developments make KuCoin more likely to recover, no one can say for sure whether the company will recover completely.
Permanent damage to trust could have serious consequences for the long-term success of KuCoin. There is a risk that customers will throw an exodus and withdraw their fortune from KuCoin.