KuCoin resumes withdrawals and deposits for BTC, ETH, and USDT

By: Jinia Shawdagor
Jinia Shawdagor
Jinia is a cryptocurrency and blockchain enthusiast based in Sweden. She loves everything positive, travelling, and extracting joy and… read more.
on Oct 7, 2020
  • The firm claims that it will gradually restore deposits and withdrawals for all tokens.
  • The wallet upgrade for USDT will only support withdrawals and deposits of ERC-20-based USDT.
  • While KuCoin claims it lost £116.2 in the recent hack, Chainalysis estimates the losses at £213.

KuCoin, a renowned crypto exchange is partially restoring deposits and withdrawals following a major attack in late September. The exchange unveiled this news on October 7 through an official announcement. Per the publication, KuCoin decided to resume these services after completing the wallet security upgrade for leading cryptocurrencies, including bitcoin (BTC), ethereum (ETH), and tether (USDT).

According to the announcement, KuCoin has resumed withdrawals and deposits for BTC, ETH, and ERC-20-based USDT. The notice went on to state that this upgrade will not support withdrawals and deposits for USDT running on blockchain networks such as EOS, Tron, and Omni.

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The KuCoin team noted that BTC, ETH, and USDT have generated new deposit addresses, recommending that users should try to update their deposit addresses in time in as much as the old addresses are still available.

The exchange added,

“KuCoin is gradually restoring the deposit and withdrawal services of all tokens, and the full service of USDT will also resume soon. Please stay tuned for the official announcement.”

A £116.2 million hack

This recovery comes after KuCoin suffered a significant hack on September 26. The exchange unveiled this news on September 26, claiming that it noticed large withdrawals, estimating that it lost about £116.2 million. However, Chainalysis, a crypto analysis firm estimated the losses at approximately £213 million.

In the announcement, KuCoin’s CEO, Johnny Lyu said that the attack only affected the exchange’s hot wallets that held BTC, ETH, and ERC-20 tokens.

Reassuring its users that their funds were safe, KuCoin said,

“We are locating the reason for the incident, and will keep you updated once it is confirmed. Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund. To ensure the security of users’ assets, we will conduct a thorough security review. The deposit and withdrawal service will be suspended during the period. We will restore the service gradually after ensuring a safe state. We will keep you updated.”

A subsequent report revealed that many projects were quick to react to KuCoin’s hack and froze most of the stolen ERC-20 tokens. On October 3, Lyu came out to disclose that the exchange’s executives had managed to find the culprits behind the hack with substantial proof at hand. 

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