A well known exchange was attacked which cost $150 million worth of bitcoins and other ERC-20 tokens.
Hot wallets being attacked very often raises the need to store the funds in the cold wallets.
Hack or An Exit Scam??
The traders having a decently sized crypto portfolio are required to have offline or hot wallets to secure their funds. As every now and then, the crypto space wakes up with updates of a new exchange being hacked. This time, a popular exchange KuCoin is reportedly being hacked with $150 million worth of cryptos including Bitcoin and other ERC-20 tokens.
Whale Alert, a blockchain tracker and analytics system which reports large and interesting transactions, reported a huge outpour of cryptos from Kucoin exchange. The most fascinating thing among all these transactions was that most of the transaction’s from and to address appeared to be the same.
It appears that a huge amount of cryptos were been transferred from an address to the same address. However, many other customers were also affected by the attack. Adding more to the substance, CryptoQuant, on-chain data/chart provider also recognized a possibility of a hack. The CEO of CryptoQuant, Ki Young Ju, presented with a chart of Binance outflow pattern during the hack.
According to Ki Young Ju, the outflow of the digital asset increases rapidly and suddenly becomes zero. In both cases, the same sort of instance has occurred.
StockPile Funds in Offline Wallets better than Exchanges?
With the growing attacks on the hot wallets, the need to store the funds in the cold storage or offline wallets has become the need of the hour. In the recent attack, the cold wallets were untouched, only the hot wallets were hit worth almost $150 million.
CryptoWhale, crypto analysts and trader, also recently shared the importance of holding offline wallets than holding your funds on an exchange.
However, an official statement from KuCoin has been released, which stated that they are locating the reason for this incident. The users who lost their funds would also be recovered completely.