Not your keys, not KuCoin’s: Red flags ignored
Back in April of 2020, Cointelegraph took a close look at the KuCoin cryptocurrency exchange. Investigating the apparent lock of the primary domain name, which was a result of a legal case under the jurisdiction of the High Court of Singapore, we concluded that:
In the absence of clarity from any of the individuals mentioned in this article, or from the company itself, users of the KuCoin cryptocurrency exchange will likely want answers on whether they are sending their money to Singapore, the Seychelles, China — or anywhere else in the world.
Now $150 million is missing from KuCoin in what has been described by the exchange as a “security incident”, and while the directors of the exchange refused to answer our questions five months ago (and implied that our accurately-sourced reporting was untrue), perhaps their customers will hold them to account this time.
In March 2020 KuCoin was facing the possibility of a class action lawsuit focused on potentially “false and/or misleading statements to account holders”. In another suit, Chase Williams v. KuCoin, filed in the Southern District of New York, the exchange was alleged to have engaged in an unlicensed securities offering. In addition to KuCoin, the latter suit named three individuals connected with KuCoin: Michael Gan, Johnny Lyu, and Eric Don.
A few days before these legal woes began to surface, KuCoin announced a corporate restructuring which included reassigning the company’s trademark from one Seychelles-registered entity to another, and appointing a new director whose affiliation with the exchange had previously been unclear.
If the opacity of the ownership is concerning, there’s another perennial question that raises flags in virulent shades of crimson. Where is KuCoin, anyway? Chase Williams suggests that it began as a Seychelles business with headquarters in Hong Kong, before moving to Singapore, and that the three named directors in its suit are believed to reside there. But like many cryptocurrency exchanges, the actual location of its office (if it has one) and staff is unclear.
There’s an old maxim in cryptocurrency. Or at least, as old as the industry itself. “Not your keys, not your coins.” It simply means that when your funds are held by a third party, you don’t control them.
Despite countless warnings about the perils of leaving funds on exchanges, crypto traders continue to trust that the security of exchanges (and the integrity of their staff) is sufficient to prevent the loss of their tokens. Despite countless warnings, they are wrong.
Whether it be a hack, a social engineering attack, or a plain old-fashioned exit scam, the allure of free money is too hard for criminals to resist. The bank robber Willie Sutton concisely (if apocryphally) explained “I rob banks, because that’s where the money is.” And exchanges will continue to represent an attractive target so long as crypto holders continue to leave their money lying around in hot wallets.
Johnny Lyu of KuCoin has insisted that customers should “Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and our insurance fund.” And as the misappropriated funds begin to move to other exchanges, evidence is beginning to appear that all may not be lost. Paolo Ardoino of Bitfinex noted via a tweet that his exchange has frozen $13 million in USDT for instance, and this type of inter-exchange collaboration may help to deter thieves in the future.
Of course, I’m hoping that KuCoin has the resources in its insurance fund to cover losses of this magnitude. Johnny Lyu seems to think so: “Yes, it’s enough. Starting from early 2018, we have established the insurance fund to deal with unexpected security issues such as this.” Perhaps the exchange will publish a wallet address to prove that such a fund exists, and that it will pay out against all valid claims. Then again, the principals couldn’t be clear with us on such basics as their location, their corporate structure, the legal status of their domain name — so maybe this level of transparency would be a stretch.
But there’s a simple fix that almost anyone can perform, a fix that ensures your funds cannot be stolen in an exchange hack. It’s a fix so easy, so obvious, that the owners of around $150 million of cryptocurrency are right now kicking themselves for not performing it.
Don’t keep your crypto on an exchange if you aren’t using the service.
Not your keys, not your coins.
Source: www.bit-cointalk.com
Contents
Bitcoin News Roundup for Sept. 25, 2020
Last week saw the third-biggest outflow from stock funds in history, and the dollar is the…
Crypto depends on the ability of regulators to create a framework that protects consumers and…
Cryptocurrency miners are back in business, but which graphics card should you choose to not be…
Bitcoin has flatlined over recent weeks, entering a trading range between $10,000 and $11,000. On…
KuCoin reported a major security breach on Sep. 26, affecting Bitcoin, Ether, and ERC20 hot…
A dizzying lack of transparency as the crypto exchange is hacked and $150m in customer funds goes…
The rise of crypto-related crimes and money laundering cases is the result of the increasing mass…
Yield farming is one of crypto’s 2020 buzzwords, but what does it mean? Here’s a beginner’s guide…
Kucoin, a Singaporean cryptocurrency exchange, disclosed that it was hacked and plans on…
While Bitcoin has seen local volatility, the coin is in a tight range on a medium-term basis. The…
Bitcoin’s price action has been choppy over the past couple of weeks, with bulls and bears…
On Friday afternoon, a number of Twitter users began to notice large withdrawals of Ethereum and…
Uniswap’s UNI token has seen its price stagnate in the time following its rebound from lows of…
There are less than a handful of days left in September, and therefore only a few days left for…
It’s been a strong past two days for the crypto market, especially Cardano. Following up on…
XRP’s price action has been rather lackluster as of late, with both buyers and sellers being…
One of the biggest impacts awaiting to hit Bitcoin and the rest of the cryptocurrency space is the…
Chainlink may be trading at half of its all-time high, but it just broke a new record – this…
Bitcoin draws comparisons to just about everything under the sun. Gold, the internet, even rat…
After a multi-week bought of grinding lower, Chainlink saw a capitulatory decline earlier this…
The price action seen by Bitcoin throughout the past couple of days and weeks has been rather…
Equilibrium – the first decentralized interoperable money market – and BKEX, a global…
Bitcoin whale clusters show the $10,407 level has turned into a strong support area, raising the…
The Bahamas has unveiled key details powering its historic launch of a central bank digital…
Had it been Coinbase or Nexo, he agreed with speculation that law enforcement would have been…
BASED has a new method for aligning decentralized finance (DeFi) projects with each other. At its…
The case, the website, the circumstances and the source all share parallels with another recent…
Bitcoin’s price forecast is looking bullish heading into the weekend. Meanwhile, DeFi investors…
He also took the time to discuss how content saved via Blockchains becomes effectively immutable….
Ethereum’s price action as of late has been quite turbulent, as it has been closely tracking that…
Blockchain startup Kirobo has announced the conclusion of its successful beta phase, opening the…
Bitcoin’s upwards momentum has stalled following the promising push higher seen yesterday This…
Bingbon has further extended the range of fiat currencies available for use on its exchange after…
All throughout 2020 Bitcoin price has been unusually correlated to major US stock indices such as…
Cryptocurrency ETP volumes continue to drop as long-term investors look for safer options during…
This project is focusing on cross-chain interoperability and on-chain credit scoring to advance…
The founder and lead market strategist at NorthmanTrader explains how the Fed has boxed itself in…
Maybe one day, drawing distinctions between crypto and traditional finance will seem quaint. Read…
Bitcoin and altcoins rebounded off their critical support levels, possibly creating a path to a…
Historically, digital art has been almost impossible to monetize. Blockchain technology can solve…
Like the internet, blockchain has been pitched as the next revolution that will disrupt all major…
Some cryptocurrencies have retraced from their highs, back to prices seen several years ago. Read…
The community had originally voted in favor of compensation, but the final tally showed a…
Fintech giant Plaid has added support for two DeFi applications, the IRS wants to know about your…
CEO Steve Ehrlich says this quarter’s revenue is on track to double what the company produced in…
Efani’s solution to SIM swapping? Make it so difficult to make changes to a cell phone account…
he platform targeted at combating scams advertised in video ads deploys a combination of Theta’s…
SoluTech, which violated securities laws and misrepresented its revenue during the token sale, now…
Ether’s recent price drop has failed to deter investors from accumulating the cryptocurrency,…
Sushi. Yams. Hot dogs. DeFi memes may be a joke, but they point to how money is always created:…
In order to achieve blockchain mass adoption, three fundamental problems should be solved. Let’s…
He’s been dismissive of all things crypto for years, but does he have a point this time? Read…
Jack Dorsey said the nonprofit Blue Sky will use blockchain to create an open Twitter protocol and…
Investments in decentralized finance (DeFi) drove returns exceeding 100% this year to Pantera…
The Ethereum venture studio said it will work on implementing Hong Kong and Thailand’s…
Bitcoin’s price woes this month likely put investors off from purchasing crypto ETPs, pushing…
The new Southeast Asian facility will mean U.S. buyers won’t have to pay an additional 25% tax on…
Avalanche started trading on Binance with a bang. The latest Ethereum rival saw its native token,…
CeFi and DeFi, these two concepts seem to be absolutely opposite from the day they were created….
Bitcoin is not welcome in Russia. The Central Bank of Russia, this year, put in place legislation…
Will centralized exchanges continue to provide the regulated environments required for digital…
Cross-chain money markets hope to drive liquidity to DeFi for top-performing assets, but will the…
Trusple platform promises to apply blockchain, AI and IoT technology to streamline cross-border…
Competition builds in market for tokenized bitcoin, used to get extra profit off holdings of the…
Bitcoin is eyeing a bull revival above the psychological resistance of $11,000, but a…
In the post-capitalist future, human beings will collaborate, communicate and create using the…
Following the publication of the FinCEN Files on Monday, investors suing OneCoin have now added…
Bitcoin could hit a new year-to-date (YTD) high, abetted in part by the risks surrounding the US…
Backed by players like Ripple and ConsenSys, the INATBA association responds to the EC’s…
China faces economic risk as illegal gambling operators move 1 trillion yuan in funds from the…
The funds will be used to set up XRP Community Fund and improve XRP Ledger infrastructure Read…
The massively popular public blockchain network NEM has been diligently working to expand into the…
Bitcoin has faced a strong correction over the past few days after peaking at $11,200 last week….
Belarus has become a hot ground of the great Bitcoin experiment as the country dwells into one of…
For some, the OCC’s recent stablecoin guidance, while helpful, raises as many issues as it…
Roskomnadzor blacklisted Binance in June, but apparently only made the cryptocurrency exchange…
Several Chinese state-owned media have made unusual coordinated reports describing…
The Internal Revenue Service plans to make all income tax payers check a box indicating whether…
Chainlink (LINK) has embarked on a strong recovery over the past 24 hours after plunging over 50%…
A long-term downtrend flips to form bullish support as Willy Woo says Bitcoin’s days of tracking…
The launch of the cross-border trade blockchain comes as Ant stokes up enthusiasm for its public…
Fintech enabler Plaid is quietly working with at least two decentralized finance (DeFi) startups….
Chainlink (LINK) recovered sharply from the $7.35 support zone against the US Dollar. The recent…
Ethereum is up 7% and it broke the $340 resistance zone against the US Dollar. ETH price is now…
Global developers can now start building projects on top of Tezos through China’s BSN. Read…
Lael Brainard, who has been involved with the Fed’s efforts to research a digital dollar, is seen…
The website of the Binance exchange is still available without additional access tools, platform…
U.S. citizens appear to be opposed to a digital dollar despite expressing concerns over the…
The US dollar is on track for its most significant monthly performance since July 2019. But it…
Bitcoin price started a decent recovery from the $10,139 swing low against the US Dollar. BTC…
The biggest debate in the crypto space over recent years has been about if Bitcoin is a medium of…
Bitcoin’s price action as of late has done little to offer investors with insights into its…
Weeks ago, XRP outperformed the rest of the market, surprising Ripple investors and other crypto…
It’s been quite a boring month for Bitcoin. After plunging around $2,000 at the start of the…
UNI – the governance token of the Uniswap platform – has been seeing some immense turbulence in…
Chainlink saw a bout of capitulation yesterday that came about after a multi-week downtrend. This…
The Bitcoin Cash community appears to be signaling support for the upcoming BCHN fork, with 82% of…
The vast majority of DeFi projects still have the ability to enter ‘God Mode’ and unilaterally…
Source: cryptocoinfactory.com
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Source: gentlecrypto.com
Bitcoin News Roundup for Sept. 25, 2020
The cryptocurrency market continues to rebound and has added another $10 billion to its market cap since yesterday. Bitcoin trades around $10,700, while some leading altcoins mark serious gains.
Following yesterday’s increase in which Bitcoin topped at $10,800, the primary cryptocurrency retraced to its intraday bottom at about $10,550. However, the bulls intercepted the price dip and drove the asset upwards once again. Just as 2020 goes so far, this Bitcoin spike followed the 1-2% gains seen on Wall Street at the Friday trading session.
The S&P 500 (1.6%), the Dow Jones Industrial Average (1.34%), and the Nasdaq Composite (2.26%) were all deep in the green.
At the time of this writing, BTC has dipped to $10,760 after getting rejected at the first major resistance at $10,790.
As per the analysis, if BTC price breaks above, it could head towards the next resistance at $11,000, followed by $11,200, $11,360, and $11,530. Alternatively, should the asset fall, it could rely on the support levels at $10,580, $10,440, and $10,390, if necessary.
Despite stocks and cryptocurrencies, gold had failed to increase: Recording an intraday high of $1,875, the precious metal dived and closed the session at $1,860.
Some alternative coins lost significant chunks of value lately, but they have been recovering in the past few days. Ethereum has continued its upward movement with another 3% increase to above $350.
Ripple has surged by 5% to $0.243. Bitcoin Cash (1%), Polkadot (3%), Binance Coin (1%), and Litecoin (3%) are also in the green from the top 10. However, Chainlink has outperformed them all by marking an 11% increase. LINK has overtaken BNB and DOT and currently occupies the 6th spot.
As it typically happens, the most volatile price moves come from mid and low-cap alts.
CyberVein leads with a 21% surge. Ren (20.5%), Yearn.Finance (17%), The Midas Touch Gold (14%), DFI.Money (14%), Cardano (11%), Zilliqa (11%), HedgeTrade (10.5%), and Nervos Network (10%) follow.
In total, the cryptocurrency market cap has increased by $10 billion since yesterday. On a 48-hour scale, the metric is up by 8% since its bottom at $319 billion to $344 billion.
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Source: https://cryptopotato.com/crypto-market-cap-gained-10-billion-bitcoin-eyes-11000-saturdays-market-watch/
Source: news.coingenius.ai
Author: Published 22 hours ago on September 25, 2020
By Republished by Plato
