Kipcoin Exchange Hack
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It appears obvious that this issue occurred due to the improper storage of funds. The operation also highly lacked transparency, promised a high rate of return, and it is unclear whether funds were ever backed to begin with.
This exchange or platform is based in China, or the incident targeted people primarily in China.[1][2][3][4]
About KipCoin
“Another Chinese based exchange has apparently lost its user’s funds. The Chinese Bitcoin exchange Kipcoin is not as well known as Huobi and OKcoin, but it apparently had a lot of bitcoins to lose. The Chinese exchange announced that it lost some or all of its user’s bitcoins and will temporarily be shutting down.” "In a statement the company released through the Chinese social media website Weibo, they mentioned that they will put all their services on hold temporarily. In this post, it was also mentioned that no Chinese Yuan were stolen from the accounts." “The hacker apparently gained access to Kipcoin’s server back in May and downloaded the wallet.dat file at that time. For months, according to Kipcoin, the hacker did nothing with the funds before beginning to move them in December 2014. It is not clear why the site didn’t secure its funds at that time.” “The site says it will come back online and will then allow withdrawals of the other digital currencies it held: Litecoin and Dogecoin. Its holdings in Yuan are safe and will presumably be used to pay back users in Bitcoin eventually. Before that can be done however, the exchange says it needs to collaborate with law enforcement in finding the hacker.”
This exchange or platform is based in China, or the incident targeted people primarily in China.
The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.
Include:
- Known history of when and how the service was started.
- What problems does the company or service claim to solve?
- What marketing materials were used by the firm or business?
- Audits performed, and excerpts that may have been included.
- Business registration documents shown (fake or legitimate).
- How were people recruited to participate?
- Public warnings and announcements prior to the event.
Don't Include:
- Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
- Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.
The Reality
This sections is included if a case involved deception or information that was unknown at the time. Examples include:
- When the service was actually started (if different than the "official story").
- Who actually ran a service and their own personal history.
- How the service was structured behind the scenes. (For example, there was no "trading bot".)
- Details of what audits reported and how vulnerabilities were missed during auditing.
What Happened
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
| Date | Event | Description |
|---|---|---|
| February 1st, 2015 12:00:40 AM MST | Main Event | Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here. |
Total Amount Lost
The total amount lost has been estimated at $690,000 USD.
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
Immediate Reactions
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?
Ultimate Outcome
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?
Total Amount Recovered
There do not appear to have been any funds recovered in this case.
What funds were recovered? What funds were reimbursed for those affected users?
Ongoing Developments
What parts of this case are still remaining to be concluded?
General Prevention Policies
Coming soon.
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ 100 Crypto Thefts: A Timeline of Hacks, Glitches, Exit Scams, and other Lost Cryptocurrency Incidents (Jan 25, 2020)
- ↑ Bitcoin Scams and Cryptocurrency Hacks List - BitcoinExchangeGuide.com (Mar 5, 2020)
- ↑ Chinese Exchange KipCoin Has Been Hacked - Coinjournal (Mar 14, 2020)
- ↑ SlowMist Hacked - SlowMist Zone (Jun 26, 2021)