Important Announcement: KuCoin Security Breach

KuCoin Security Breach

At 2:51AM (UTC+8) on September 26, 2020, KuCoin experienced a security breach with the exchange’s wallet which led to tokens — primarily ERC-20 tokens — being transferred out.

KuCoin quickly reported that the tokens lost were a small portion of their total holdings and that all funds are covered under their insurance fund set up in 2018.

VELO Tokens Transferred

The Velo Labs team was recently notified that approximately 122,000,000 VELO tokens — along with many other tokens on the Stellar blockchain — were transferred out of KuCoin’s wallet during the security breach. The 122,000,000 tokens include VELO tokens allocated for the KuCoin Spotlight token sale, Airdrops, and tokens for liquidity provision.

The VELO tokens were moved out of the KuCoin Stellar wallet: GCTLB7LW7B5ON4QIBIDEWA7MC2KJL2NZEXK24RU32QNOB5IMMCGNLMBD

To the address below:
GBM3PJWNB5VKNOFXCDTTNXPMUNBMYTLAAPYDIIKLHUGMKX7ZGN2FNGFU

Response: All VELO tokens will be safe and completely secured.

The Velo Labs team would like to state to the Velo community’s users that all VELO tokens will be safe and completely secured. Velo is working closely with KuCoin to resolve this issue. There was no security breach on the Velo or Stellar networks. The incident was isolated to the exchange’s security breach.

Velo Labs will redeploy and replace each of the VELO tokens that were transferred to the hacker’s address. The hacker’s VELO tokens will be invalidated. Total token supply will be completely unaffected. No users, private investors, and other stakeholders will be affected. We will audit future exchange partners closely to mitigate the risk of such a situation arising again.

Thank you for your attention and understanding in this unprecedented event.

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