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Beware: Kucoins handling of recent exchange hack, and what it is showing us about Centralized Exchanges.

Beware: Kucoins handling of recent exchange hack, and what it is showing us about Centralized Exchanges.

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by COINS NEWS 8 Views

After the recent hack, Kucoin has been reaching out to projects where coins have been stolen and asking them to freeze stolen coins by performing a network swap, akin to what happened with ETH & ETC. This approach is wrong as projects do not have to take the burden of the hack and freeze hacked tokens. This goes against the entire point of cryptocurrency being censorship resistant.

For projects that have the ability to freeze tokens, it's fine that Kucoin reaches out to them for help in freezing hacked tokens and recovering lost funds. Unfortunately this isn't possible for all projects and in these cases Kucoin is keeping the withdrawals locked to drive the price down and letting traders and holders shoulder the costs of the hack.

Even with projects that are cooperating, Kucoin is dragging their feet with unlocking wallets, further driving the price down and again letting the traders and token holders shoulder the burden.

One example of this is the following project where their ceo has spoken out: https://medium.com/vid-foundation/kucoin-can-now-open-vi-withdrawals-d77c783f4541 This exact scenario is going on with many other projects such as Akropolis, Kusama, AMPL...

Any mention of this on their telegram channels leads to a ban and support tickets are only being answered with cookie cutter answers that are all the same.

There's something seriously shady going on with Kucoin and I suggest that anyone that still holds/trades funds there move them to a different exchange. Their promise of funds being safe and insured is showing itself to be a lie as each day passes.

If you have also been affected by this, there is a Telegram channel for coordinating efforts to get answers and action from Kucoin: kucoinhackvictims

Join us and let us know which community you come from and help us find answers!

submitted by /u/spoonfednonsense
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