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KuCoin Hack: SelfKey Official Statement

SelfKey’s official statement regarding the recent KuCoin security incident.

30 Sep
2020
Sree
SelfKey Kucoin hack
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As you may have heard, there was a security breach of the KuCoin Exchange. SelfKey would like to make a statement about how this breach could affect holders of KEY, the Self-Sovereign Identity Token.

According to what we know about the security breach, the hacker or hackers primarily used this address to accumulate the stolen digital assets. If this is true, it appears that ~54 million KEY were stolen.

An official statement regarding the incident from KuCoin Global CEO, Johnny Lyu was, “Please rest assured that if any user fund is affected by this incident, it will be covered completely by KuCoin and [Kucoin] insurance fund.”

We have also heard that many digital asset exchanges have taken steps to prevent trading of the stolen KEY on their exchanges.

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However, we are unsure of how effective the steps taken by these exchanges will be, but we are encouraged that the exchanges are taking a proactive approach.

Users may want to refrain from providing liquidity on decentralized exchanges.

Finally, please note that there will not be any fork or any other measures taken that might interrupt the KEY token smart contract. Not only might this be technically infeasible, but it is against our principles of decentralization.

SelfKey fully supports the concept of decentralization in blockchain and cryptocurrencies, and we endorse the motto of “not your keys, not your crypto.” 

Hence, we encourage you to always utilize a non-custodial and open-source wallet, such as the SelfKey Wallet.