UNKNOWN

OCTOBER 2020

SINGAPORE

KUCOIN

DESCRIPTION OF EVENTS

"Behind KuCoin are two tech geeks who were early blockchain adopters. Having started coding at the age of 8 and founded his first startup at the age of 16, Michael heard about Bitcoin in 2012 from his boss Eric, and immediately started to mine. While he tried to sell some BTC on Mt. Gox, he discovered that, what was the world's largest platform at the time, was difficult for beginners to use. As the adoption of blockchain continued, Michael and Eric realized that it was reshaping the financial system, building a new system that not only serves the few richest, but everyone in the world - even the uneducated, unemployed and unbanked. By the end of 2013, they wrote down the first code in a cafe, beginning the journey of People’s Exchange to allow everyone to get involved with crypto."

 

"KuCoin is a well-known name in the crypto industry as it managed to establish itself as a prominent one-stop shop for all sorts of crypto operations. Launched in August 2017, the exchange has over 200 cryptocurrencies, more than 400 markets, and has grown into one of the most colorful crypto hubs online."

 

"The KuCoin platform was designed for investors of all types, with 24/7 world-class services in your preferred channel and language." "KuCoin is the most advanced and secure cryptocurrency exchange to buy and sell Bitcoin, Ethereum, Litecoin, TRON, USDT, NEO, XRP, KCS, and more."

 

"KuCoin boasts one of the world's most sophisticated security technology and maintenance team, and is constantly upgrading our security systems to ensure the safety of user assets and accounts."

 

"The KuCoin Group has received several reports from users that a website is using the KuCoin trademark to operate a phishing website with the intent to steal the sign-in credentials of KuCoin users."

 

"The KuCoin Group hereby declares and clarifies:"

 

"1. “https://www.wallet-kucoin.net” is a fraudulent website;"

 

"2. “https://www.wallet-kucoin.net” have no relationship with the KuCoin Group, and the KuCoin Group has never authorized the platform to use the KuCoin trademark and other intellectual property;"

 

"3. To avoid these websites, we strongly recommend that you do the following:"

 

"a) Be extremely cautious when clicking unknown links (Examples: links shared on social networking sites, Telegram groups and search engines) with domain names similar to KuCoin’s official website."

 

"b) Always use KuCoin official website (www.kucoin.com and www.kucoin.io) to sign in and trade."

 

"c) Add KuCoin’s official website to your browser’s bookmarks to reduce your chances of encountering phishing sites."

 

"d) Clear your browser’s cookies, and reset your KuCoin sign-in password if you have clicked suspicious links."

KuCoin reported that a fake website was set up to phish their platform users. This would be used to steal login information of platform users, leading towards a theft of funds.

HOW COULD THIS HAVE BEEN PREVENTED?

Phishing works because users will regularly log in, and often don't give a second thought to the routine task. The best protection against loss of funds is to have additional specialized factors required on large withdrawals or trading, such as a separate trading/withdrawal password and hardware-based 2FA system. By having a different system from the login system, it's very clear to users that a withdrawal or trade is being attempted on their behalf, and their funds are much more likely to stay safe. Adding delays on withdrawals, increasing education, and enabling users to appoint friends or family in approval roles would also give users tools. For the occasional attack which is still successful, our proposed industry insurance fund would be avalable to assist.

 

Check Our Framework For Safe Secure Exchange Platforms

Sources And Further Reading

 For questions or enquiries, email info@quadrigainitiative.com.

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