Following a $275 million hack in September, cryptocurrency exchange, KuCoin announced on Sunday that it has “restored the deposit and withdrawal services of all tokens.” After a partial reopening that took place in October, this restoration of services is the exchange’s latest step towards a full recovery.
Indeed, in October, users on the Seychelles-based exchange were allowed to move their Bitcoin, Ether, and Tether Dollars on and off of the exchange; however, now users can move the full variety of tokens on and off the exchange even though certain tokens may have some withdrawal restrictions due to “ongoing judicial proceedings.”
A Devastating Hack
Still, the exchange may have a way to go before full functionality is restored. When KuCoin was hacked on September 26th, the original sum of stolen coins was reported at around $150 million. However, crypto analytics firm Chainalysis said that the number was closer to $275 million.
At the time, KuCoin said that the incident was being investigated by law enforcement and that users would not lose their funds: “rest assured, if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund,” a statement by the exchange said.
In a live stream that followed the hack, KuCoin Chief Executive, Johnny Lyu said that the heist was pulled off by hackers who had managed to obtain the private keys of the exchange’s hot wallets. However, as soon as the exchange saw that the withdrawals were happening, the remaining funds were transferred into new hot wallets and the old ones were abandoned.
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CoinTelegraph reported that the hack “mobilized a massive response across the cryptocurrency world:” after news of the hack went live, a number of projects chose to freeze their tokens or reclaim them from the hackers; some even initiated hard forks to help KuCoin retrieve stolen funds.
Life after the Hack: Challenges and Opportunities
While KuCoin appears to be on the road to recovery, the exchange is still dealing with several other challenges: KuCoin’s web domain is currently locked in Singapore. In the United States, KuCoin is embroiled in a class-action lawsuit.
Still, the company is moving forward on other fronts. Last week, Finance Magnates reported that KuCoin is planning the launch of a non-fungible token (NFT) exchange. NFTs are unique, ‘collectable’ tokens that have use cases in areas that include ‘artwork and GameFi’.
According to an announcement published by KuCoin, the NFT exchange platform will be fully operational within “the next few months.”