Kucoin, a leading crypto derivatives firm, had least expected that it could ever face a crypto hack because its network was regarded as “unreachable”. However, in 2020, there was a hack attack met by Kucoin and unfortunately, the hacking attempt turned out to be successful. Resultantly, the hacker managed to steal crypto funds worth approximately US$ 250 Million.
Normally, when someone is hacked, then there is no chance of getting the money back. However, in the case of Kucoin, the firm in fact got most of the funds it had lost during the attack. The obvious reason was continuous efforts and efficient strategy and then implementing the strategy in letter and spirit. Kucoin’s struggle in the hope of retrieving the lost funds was led by its Chief Executive Officer, Mr. Johnny Lyu.
Lyu was interviewed by a crypto news website called Bitcoin.com News. At there, he revealed what exactly needed to be done after the hack attack and suffering huge losses. It may be noted that under the leadership of Lyu, Kucoin recovered the looted funds quickly after the incident taking place.
According to Lyu, the first and foremost important thing after the hack attack is to react immediately without wasting any time. He says that time is crucial because if it is utilized efficiently, then there is a chance that a victim can locate the funds. Once the funds are located, then it is not very difficult to stop them from being transferred to someone else.
Lyu informed the crypto news agency that the hack attack caused them to lose about 250 Million Dollars. All the money belonged to Kucoin’s customers and for Kucoin and the firm couldn’t afford to lose valuable clients. He told that so far the firm has been able to recover about 84% of the looted funds since the hack attack. While the rest of 16% was put in by the firm itself for refunding the same back to Kucoin’s customers. As a matter of fact, none of Kucoin’s customers was made to suffer any loss because they were fully compensated. As regards the loss, which the firm has had to bear, Lyu is hopeful that the same would also be recovered in due course.
As regards the strategy for the recovery of funds, Lyu told that soon after the hack, his firm acted vigilantly. First of all, a complaint was immediately lodged before the local as well as international cybercrimes authorities. There was cooperation between the firm, law enforcement agencies as well as other crypto derivative exchanges 24/7. One of the key elements of recovery was the Safeguard Program that was self-developed by Kucoin, said Lyu. Through this program, the victim can request support and assistance from other institutions such as crypto exchanges and blockchain projects.
He claimed that before the hacker could dispose of the funds, his firm, where the stolen funds were kept, informed Kucoin. The funds were thereafter frozen and that was how Kucoin made the recovery possible.