KuCoin suffered the third-largest hack in history after losing an estimated $150 million. Although KuCoin promised that all user funds would be recovered, the hack could have long-term implications on the crypto industry, undermining confidence in exchanges, yet again.
Charles Guillemet, CTO of Ledger, a crypto security company, weighs in on the hack:
“It seems incredible that KuCoin would keep upwards of $150-220M in hot storage. This runs a high risk when it comes to governance and management of liquidity. Exchanges must encourage risk mitigation tactics like using a hardware wallet and educating users to only allocate less than 10% of their crypto assets to hot wallets.”
Source: Read Full Article