Fun

Kucoin Hacker Leverages Uniswap to Dump Vast Number of ERC20 Tokens

News Feed - 2020-09-27 11:09:13

Kucoin Hacker Leverages Uniswap to Dump Vast Number of ERC20 Tokens


Since the recent Kucoin hack, the crypto community has been waiting for the hacker to move funds. During the early morning hours (ET) on Sunday, a number of people noticed the Kucoin hacker started to move a large amount of ERC20 tokens to connect with the decentralized exchange (dex) Uniswap.


The cryptocurrency exchange Kucoin was hacked on September 25, 2020, and early estimates said the trading platform lost around $150 million. On Sunday, the estimate is a bit larger, as the crypto community thinks upwards of $200 million in crypto coins were stolen.


Kucoin CEO, Johnny Lyu, explained the situation during a live stream filmed on Saturday and he said that the Kucoin team is continuing to “evaluate the total value.”


Estimates say 1,008 BTC was stolen, along with 14,713 BSV, 26,733 LTC, 9,588,383 XLM, Omni and EOS based tether (USDT) worth $14 million, $153 million of ether and ERC20s, and over 18 million XRP.Etherscan and other ETH explorers have flagged this address as being involved with the Kucoin hack.


During the early morning hours on Sunday, the hacker started leveraging the dex Uniswap to swap a great number of ERC20s. One particular ERC20 the hacker obtained, is the data token called “Ocean” and the suspect was swapping the token in 10k batches. One observer on Twitter said the hacker dragged the price of the Ocean token down by 4% “in less than an hour.”


“Due to low liquidity for this token, he is going to crash it hard,” the individual added. Other observers said Ocean lost a total of 10% during the early morning (ET) dump.


A great number of other ERC20’s have been obtained by the hacker and armchair sleuths are watching onchain activity closely. Tokens obtained by the Kucoin hacker include Alchemy, Ampleforth, V-ID, Trace, Utrust, Digitex, Synthetix, and many more.


Members of the Ocean Protocol team informed the public that the developers were aware of the Kucoin hackers’ most recent moves. The Ocean dumping invoked the development team to freeze the Ocean token contract.


“As a first action to protect Ocean token holders, we have paused the Ocean contract,” the Ocean Protocol team tweeted. “We will update the community with more information in the coming hours.”


The Block Crypto’s Director of Research, Larry Cermak, also wrote about the event on Twitter, as he watched the Uniswap dumping in real-time. After the hacker briefly paused the Ocean token dumping, Cermak stressed that a “high profile incident like this could bring Uniswap into regulators’ spotlight. Especially if the swapping continues.”


Many of the customers from Kucoin seem to believe the exchange is handling the hack properly and commented on the situation during Johnny Lyu’s live stream on Youtube. One XRP proponent said that Kucoin was being “really transparent.”


“Good for Kucoin,” the individual added. “Sorry you had to go through this nightmare scenario, I hope the perpetrators are caught.”


Kucoin says that customers will be reimbursed and the trading platform will come back online again in about a week. Kucoin also noted that it has been working with various exchanges and blockchain networks, alongside law enforcement officials.


The hack has had very little effects on the crypto economy, in general, as the prices of ETH, BTC, and other top crypto assets this weekend remained relatively stable after the Kucoin incident.


What do you think about the Kucoin hacker dumping on Uniswap? Let us know what you think about this subject in the comments section below.Novogratz: Dangerous Time to Be in Stocks, Bitcoin Has More Upside Than GoldNEWS | 2 hours ago$2.4 Trillion Stimulus Package Proposed in US With Second Direct Payments to AmericansNEWS | 6 hours agoTags in this story$200 million, BTC, decentralized exchange, DEX, ERC20 Tokens, ETH, ether, Ethereum, Hacker, Johnny Lyu, Kucoin CEO, Kucoin hack, Larry Cermak, Live Stream, Ocean Protocol, Ocean Tokens, uniswap, XRP


Image Credits: Shutterstock, Pixabay, Wiki CommonsPurchase Bitcoin without visiting a cryptocurrency exchange. Buy BTC and BCH here.Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Read disclaimerShow comments

News Feed

Prashant Jha13 hours agoSwiss crypto bank SEBA gets Hong Kong SFC licenseSEBA Bank began its quest for Hong Kong expansion in late 2022, setting up an office in November, with the firm obtaining an in-principle approval
Cash App’s Bitcoin Revenue Grew 119% in 2021, Gross Profit From BTC Rose 124%
Cash App’s Bitcoin Revenue Grew 119% in 2021, Gross Profit From BTC Rose 124% Popular mobile payment platform Cash App, developed by Jack Dorsey’s Block Inc., generated $1
Bitcoin, Ethereum Technical Analysis: BTC Back Above $40,000 as Bulls Re-Enter
Bitcoin, Ethereum Technical Analysis: BTC Back Above $40,000 as Bulls Re-Enter After falling to multi-week lows to start the week, BTC rebounded back above the $40,000 level on Tue
World’s Largest Asset Manager Blackrock Launches Bitcoin Private Trust Citing ‘Substantial Interest’ From Clients
World"s Largest Asset Manager Blackrock Launches Bitcoin Private Trust Citing "Substantial Interest" From Clients The world’s largest asset manager, Blackrock, has launched
AAVE Faces Major Price Drop As TD Sequential Signals Sell – Details
Este artículo también está disponible en español. The Aave (AAVE) market suffered significant losses in the past week as price declined by 17.07% according to data from C
Fearing USD Decline, Ex-CFTC Heads Propose a Blockchain-Based Digital Dollar
Two former heads of the Commodity Futures Trading Commission (CFTC) are offering up a plan for a government-sanctioned, blockchain-based digital dollar. In an op-ed for the Wall
Unnamed South African Investor Proposes Buying 51% Stake in Collapsed Crypto Firm for $5 Million
Unnamed South African Investor Proposes Buying 51% Stake in Collapsed Crypto Firm for $5 Million An unknown investor has proposed to acquire a 51% stake in Africrypt — the c
Welcome to the United Kingdom — Please hand over your crypto
Syed Rahman6 hours agoWelcome to the United Kingdom — Please hand over your cryptoAn April change to United Kingdom law will allow authorities to treat crypto like other assets by seizing it without accusing suspects o
SUI Defies Odds With A Sharp Rebound Above $4.9: New Highs Loom?
Este artículo también está disponible en español. SUI has made an impressive comeback, defying market expectations with a robust rebound that propelled its price above th
Institutional DeFi players will bring commercial real estate onchain: KPMG exec
Brayden Lindrea3 hours agoInstitutional DeFi players will bring commercial real estate onchain: KPMG execDeFi activity from institutions would be more “permissioned” as market participants will want to know who they
Harris campaign aims to repair Democratic Party ties with crypto sector
Amaka Nwaokocha12 hours agoHarris campaign aims to repair Democratic Party ties with crypto sectorAs the 2024 election approaches, the interplay between political strategies and industry dynamics will continue to evolve.
Bitcoin, Ethereum Technical Analysis: BTC Nears Fresh 9-Month High as Fed Meeting Looms
Bitcoin, Ethereum Technical Analysis: BTC Nears Fresh 9-Month High as Fed Meeting Looms Bitcoin moved closer to a fresh nine-month high on Wednesday, as markets prepared for today&