Final Statement on Kucoin Hack

This statement follows our first public correspondence on September 29th, following the Kucoin Hack Incident.

The community have been eager to receive an update on correspondence and discussions between the Team and Kucoin. Since then, under 50% of the projects affected (92/200) by the Hack have carried out centralised remedial actions such as token swaps and re-issuing of tokens. Other projects have been unable to perform token swaps for various reasons.

Following legal advice and guidance, in relation to the nature of our work around privacy and standing behind an argument around decentralisation. Privacy has and is becoming a focal point of contention within the industry and in order to stand behind our products which protect and defend users, actions such as a token swap would compromise this.

We have been assured, as all projects have, that Kucoin’s insurance fund will be ample enough to cover the losses by their users, as such, ($PLT) joins the ranks of other projects in being unable to perform a token space.

We’re primary unable to perform a token swap due to legal issues around potential securities violations, the breach in decentralisation and the future compromise of our privacy based products, the intensity of actions by authorities against crypto exchanges offering derivatives for retail use, the complexity within our smart contracts and the lack of communication from Kucoin. Our last correspondence from the Kucoin team was on September 29th, over three weeks ago.

The project feel that there has been adequate time in order for Kucoin to respond, but we have not had the privilege of receiving a response. As such, will not be performing a token swap, but opt for the Kucoin Insurance Fund.

Updates for the Community:

  • A token swap will not be performed in relation to the Kucoin Hack

Our advice to the Kucoin Management Team is that they will need to procure a plan in order to remedy the losses for their users. Given that it is a small amount in value of tokens for Kucoin, it should be a relatively quick issue to solve.

We understand that this will not be the outcome that all of our community wanted, but it is the only path forward in order for our project to be viable long-term and to achieve the decentralisation needed within the space.

Signed: The Add.xyx Team

Follow on Twitter, Telegram, LinkedIn, & subscribe to our Newsletter for project updates and announcements. Chat directly with other developers on Telegram.



A Privacy-preserving DeFi Aggregator

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store