Our response regarding the KuCoin hack
On September 25/26 ~ 150 million USD worth of crypto assets were stolen by a currently unidentified hacker from the KuCoin.com exchange platforms hot wallet.
This amount sadly also contained 622,688.45 LYXe, with a value at the time of ~450,000 USD/LYXe. Those LYXe are from users of the KuCoin platform.
In perspective, this is around 12% of all LYXe that were available on KuCoin at that time, the majority of 4.3 million LYXe is still held by KuCoins wallets at the time of the writing.
KuCoin promised to its users to cover all lost assets, and we expect this also to happen for the lost LYXe.
Why not freeze the hacker's assets, or move it’s balance?
The LYXe token smart contract does not contain freeze functionality for singular addresses. We also do not have the ability to arbitrarily move tokens from the user's address.
LYXe is not a security, therefore we can not control its movements or owner's accounts. We do not have default operators set, as LYXe — even in this early stage, should be controlled by its community and not a single entity.
Why not do a token swap?
A few projects made a token swap, meaning replacing the current token smart contract with a new one, holding the same balances, except the hacker's balance.
This is a feasible way for many projects, but sadly not a feasible option for LUKSO. The LUKSO token contract is directly connected to the Reversible ICO contract. This means replacing the token contract would also mean replacing the rICO contract, which in itself is a large endeavour that has its own security concerns.
As much as we want to help KuCoin resolve this issue, we can not compromise the security and integrity of our community. We do expect KuCoin to cover the loss of its users, and are in constant contact with KuCoin on this matter.
Is the Reversible ICO safe?
Reversible ICO participants are untouched by the KuCoin hack and have the ability to reverse committed ETH at any point in time by sending back locked/reversible LYXe.
The Reversible ICO smart contract was audited and is currently the safest option to buy LYXe. We do encourage buying LYXe in the Reversible ICO, over any exchange, as exchanges create a larger attack surface for hackers.
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If you have any feedback or ideas on a sane course of action, feel free share it with our community in discord.
