KuCoin Loses $22,000 due to Twitter Hack, Exchange Announces Reimbursement

UTC by Bhushan Akolkar · 2 min read
KuCoin Loses $22,000 due to Twitter Hack, Exchange Announces Reimbursement
Photo: Depositphotos

KuCoin has assured all the impacted users that it would reimburse them the amount lost while also pledging additional security measures.

In the latest development, the hackers managed to briefly breach the Twitter account of the crypto exchange KuCoin thereby causing the exchange users to lose more than $22,000.

Earlier today on April 24, hackers took over KuCoin’s Twitter account for 45 minutes, promoting a fake activity. Although the incident was brief, KuCoin has acknowledged that it identified 22 such transactions in connection with the fraudulent activity, including that of BTC and ETH. The value of the losses totaled 22,628 USDT.

KuCoin said that to prevent any further harm to users, it is currently examining and blocking suspicious addresses in this regard. Although KuCoin recovered its Twitter account, the exchange has clarified that it was the only channel affected. Thus, it conveyed that its website and other social handles are doing absolutely fine.

Twitter is the most widely used social media channel for crypto discussions.  Thus, it has been a go-to communication for some of the top crypto personalities as well as crypto firms to communicate their ideas.

However, this also makes Twitter the top choice for hackers to manipulate users by posting fake giveaways and stealing people’s money. In a similar incident, hackers managed to hijack the Twitter account belonging to Circle’s Chief Strategy Officer Dante Disparte, and thus promoting a fake USDC airdrop.

Using such tricks, hackers have been airdropping several such fake tokens or circulating fake tokens under the name of popular platforms.

KuCoin Decides to Reimburse the Victims

Crypto exchange KuCoin has acknowledged the development and stated that it would reimburse the victims of the hack. In a message on Twitter, the crypto exchange noted:

“KuCoin will fully reimburse all verified asset losses caused by the social media breach and the fake activity. If you’re affected by this incident, please contact KuCoin Support team at [email protected]”.

Furthermore, KuCoin noted that along with Twitter’s 2FA, they plan to implement additional security measures in order to bolster the protection of its social media accounts. “We are also conducting a thorough investigation of the incident with Twitter to prevent similar occurrences in the future,” it added.

As the news of the hack spread, KuCoin’s native crypto token KCS came under selling pressure. As of press time, the KCS token is trading 0.71% down at a price of $8.05 and a market cap of $781 million.

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