It is impossible to completely decentralize a crypto project: maybe not, but you would have to be prepared to pay the price of real decentralization. The hunt for stolen funds on KuCoin is in full swing: the solidarity of the players in the crypto-industry, however, reveals the weakness of the crypto projects concerned by the hack.
Gold, rubies, emeralds and more
A reminder of the facts: during the weekend of September 27, the exchange KuCoin gets hacked and loses $ 275 million in crypto, following a security breach in his network.
The loot includes Bitcoins (BTC), Ripples (XRP), Bitcoins Satoshi Vision (BSV), Stellar Lumens (XLM), Trons (TRX), stablecoins, Ethers (ETH) and ERC-20 tokens.
KuCoin took full responsibility for the hack and promised to indemnify customers through his insurance fund.
In a tweet from September 28, 2020, Changpeng Zhao, Binance CEO, shares the hypothesis that the hackers are arguably employees of the exchange, given their level of incompetence.
Fund freeze reveals deception of decentralization
KuCoin contacted other players in the crypto industry to prevent hackers from laundering the stolen funds.
The exchange unveiled a list containing suspicious addresses and urged the parties concerned to block them.
Since the start of the week of September 28, 2020, around ten projects have revealed that they have taken steps to identify suspicious transactions.
Tether (USDT) is one of the first exchanges to announce the freezing of nearly 33 millionUSDT.
Ampleforth deactivated nearly 14 million tokens AMPL, ie 10% of its total offer, resulting from the hack, by a modification of its smart contract.
The hybrid blockchain project AERGO will proceed in the same way by deploying a new contract.
These measures resulted in the freezing of 50% of the funds associated with the hack. In light of these developments, Dan Held, responsible within Kraken, indicated that if these procedures were possible, these crypto projects are not decentralized, on the contrary.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
A decentralized cryptosphere would therefore be a cryptosphere without a sheriff; Above all, we should think about decentralizing this function, so that it is not in the hands of a handful of people. KuCoin knocked on the door of other exchanges and, they opened their doors, closing that of decentralization.
Litecoin, welcome in the Silver Age