Popular cryptocurrency exchange, KuCoin, found itself in hot water after its Twitter account was hacked for a brief period of 45 minutes today.
1/ The @kucoincom handle was compromised for about 45 mins from 00:00 Apr 24 (UTC+2). A fake activity was posted and unfortunately led to asset losses for several users. KuCoin will fully reimburse all verified asset losses caused by the social media breach and the fake activity.
— KuCoin (@kucoincom) April 24, 2023
The security breach led to asset losses for numerous users, as the hackers managed to post a series of fraudulent tweets. However, the KuCoin exchange has taken swift action to address the issue and reassured users that their assets on the platform remain secure.
In an official statement, KuCoin announced that it would fully reimburse all verified asset losses caused by the social media breach and the fake activity.
The exchange identified a total of 22 transactions that fell victim to the fraudulent tweets, resulting in a combined loss of approximately 22,638 USDT. To protect users from further harm, KuCoin is currently investigating and blocking any suspicious addresses linked to the incident.
3/ Until 02:00 Apr 24 (UTC+2), we have identified 22 transactions including ETH/BTC associated with the fake activity, with a total value of 22,628 USDT. To prevent more users from being harmed, we are currently examining and blocking suspicious addresses.
— KuCoin (@kucoincom) April 24, 2023
Despite the temporary compromise of its Twitter account, KuCoin maintains that the assets on the exchange are secure. The company is also cooperating with Twitter to conduct a thorough investigation of the incident and prevent similar occurrences in the future.
In related crypto news, KuCoin has recently come under the regulatory spotlight. Last month, New York State Attorney General Letitia James filed a lawsuit against the Seychelles-based exchange, accusing it of operating as an unregistered commodities and securities broker or dealer.
According to the lawsuit, Kucoin “offered, sold and purchased and effected transactions in cryptocurrencies that were commodities and securities within New York, without having been registered as a commodity broker-dealer and securities broker or dealer in New York.”
The suit, which has drawn significant attention, also listed Ether as an unregistered security, sparking debate within the cryptocurrency community.
Despite the setbacks, KuCoin has vowed to learn from the Twitter hack and has expressed its commitment towards protecting user assets.
