The KuCoin exchange hackers are now beginning to dump huge amounts of the ERC-20 tokens in their possession. The massive token dump of several ERC-20 tokens is happening on Uniswap, the Decentralized exchange protocol. And this is practically why the dumps have become unstoppable.
The Etherescan link shows that the hackers initiated the dump with OCEAN. They transferred 200,000 tokens into a wallet before exchanging them for ETH through Uniswap. So, aggregately speaking they have already offloaded 130,000 OCEAN in 13 separate stacks of 10,000 tokens each. In order to cease the loss of liquidity in the OCEAN/ETH PAIR which is inevitable, the hackers stopped the dumping for a brief period only to continue later. The behavioral model displayed by the hackers has led to a slump in the OCEAN/ETH pair by 13% in only 2 hours.
Source: Trading view
In response and more as a protective measure, OCEAN protocol stopped briefly the OCEAN contract so that trades could not take place. The hackers were thus prevented from dumping more OCEAN tokens so that the price doesn’t slide further. Once this was done, the attackers moved on to dump Synthetix tokens which were 578,000 in possession. Again as was impending, it also had a similar effect on the SNX price which fell from less than $5.50 to as low as $4.70 in only two hours.
It was Whale crypto tracking services that brought to the notice that in the past 24 hours more than a dozen SNX transfers have taken place. This has been marked as ‘transferred from KuCoin 2020 hack to unknown wallet’. Till now the amount the hacker has transacted amounts to approximately $6,741,064 in SNX.
Larry Cermak was quick to point out that the hackers still possess vast amounts of ERC-20 tokens which could be potential Uniswap dumps. Now this will surely have a negative impact on the price, but at the same time, it brings back the ghost of regulatory attention which is much needed on Uniswap. This is because Uniswap is totally decentralized and is watertight when it comes to non-consensus action.
As for the attack, the crypto community quickly became aware of the attack and the $150 million figure of the hack. Tron and Binance were quick to respond and were willing to offer any kind of help if KuCoin funds were to arrive on their exchanges. Tron’s CEO said that the Tron scan would effectively label the hacker’s address so that any transfer with the stolen tokens will be tracked immediately. A lot of projects acted in their own ways as damage control measures. Tether was quick to respond and immediately froze $20 million worth of USDT based on ERC 20 as was announced by the company CTO.
KuCoin has clearly indicated that only the hot wallets have been attacked and the funds of the attacked wallets have been compromised. They have promised compensation to every user who has lost funds.