KuCoin has assured all affected users that it will compensate them for the lost amount while also promising additional security measures.
In the latest development, hackers managed to briefly hack the Twitter account of cryptocurrency exchange KuCoin, causing users of the exchange to lose more than $22,000.
Earlier today on April 24, hackers took over KuCoin’s Twitter account for 45 minutes, promoting fake activity. Although the incident was brief, KuCoin has acknowledged that it has identified 22 such transactions in connection with fraudulent activity, including BTC and ETH. Total losses amounted to 22,628 USDT.
KuCoin said that to prevent any further harm to users, it is currently checking and blocking suspicious addresses in this regard. Although KuCoin has restored its Twitter account, the exchange has clarified that it was the only channel affected. Hence, it has conveyed that its website and other social processors are doing very well.
Twitter is the most used social media channel for crypto discussions. Thus, it has been a means of communication for some crypto dignitaries as well as crypto companies to communicate their thoughts.
However, this also makes Twitter the best choice for hackers to manipulate users by posting fake gifts and stealing people’s money. In a similar incident, hackers managed to hijack the Twitter account of Circle Chief Strategy Officer Dante Disparte, thus promoting fake USDC downloads.
Using such tricks, hackers have dropped many of these fake tokens or distributed the fake tokens under the name of popular platforms.
KuCoin decides to compensate the victims
Cryptocurrency exchange KuCoin has acknowledged the development and stated that it will compensate the victims of the hack. In a message on Twitter, the cryptocurrency exchange male:
“KuCoin will fully reimburse all verified asset losses caused by the social media breach and fake activity. If affected by this incident, please contact the KuCoin support team at (email protected).”
Furthermore, KuCoin indicated that along with Twitter 2FA, they plan to implement additional security measures in order to further protect its social media accounts. “We are also conducting a thorough investigation of the incident with Twitter to prevent such incidents from occurring in the future,” it added.
As news of the hack spread, KuCoin’s native cryptocurrency token, KCS, came under selling pressure. As of press time, the KCS token is trading down 0.71% at a price of $8.05 and a market cap of $781 million.
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Bhushan is a financial technology enthusiast with a good knack for understanding financial markets. His interest in economics and finance has turned his attention towards the new emerging Blockchain technology and Cryptocurrency markets. He is persistent in the learning process and keeps himself motivated by sharing the knowledge gained. In his spare time he reads fantasy and thriller novels and occasionally explores his culinary skills.