Crypto exchange KuCoin reported that its Twitter account was hacked

KuCoin promises to compensate users for losses incurred due to the incident and strengthen security measures

Cryptocurrency exchange KuCoin warned about the hacking of its official Twitter account. The incident occurred on the night of April 23 to 24. The platform reported that a small number of users lost funds due to actions related to fake tweets.

KuCoin is a centralized crypto exchange that ranks 7th in terms of trading volume. In the last 24 hours, according to CoinMarketCap, that figure on the platform was $514 million.

Hackers gained access to the KuCoin account for 45 minutes. After the exchange recovered the account, it identified 22 transactions. And that included Bitcoin and Ethereum transactions that were linked to the incident. The platform estimated the total loss at approximately 22,600 USDT.

“Kucoin will fully reimburse all asset losses caused by the social network hack and fake activity. To prevent more users from being harmed, we are currently checking and blocking suspicious addresses,” the statement reads.

Our experts note that Kucoin claims that users’ assets on their exchange remain safe. An investigation into the incident is underway. In addition, in addition to the existing two-factor authentication. Additionally, the platform intends to introduce additional security measures on its accounts in social networks.

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Major auditors Mazars and Armanino began to refuse to conduct inspections of crypto exchanges

Mazars and Armanino have suspended the practice of providing services to crypto-industry platform. Crypto-Upvotes expert review

Auditing firms have begun to refuse to work with companies in the cryptocurrency industry. For example, Mazars, which recently audited Binance reserves, has suspended its audits of cryptocurrency companies. The firm Armanino, which worked with FTX, is also discontinuing its crypto audit practice and turning away clients.

Mazars Group, the French accounting firm that Binance, KuCoin, and other major industry players turned to to verify their reserve assets, stopped all work with cryptocurrencies. That’s because markets don’t trust its “reserve proof”.

A Mazars official said the company would make a statement in due course and declined to comment further. The website where Mazars reports to cryptocurrencies is currently down.

Another auditing company, Armanino, which has been working in the crypto industry since 2014, is also discontinuing its crypto-audit practice. And is giving up on clients, Forbes writes, citing sources familiar with the matter. According to their information, the firm’s cryptocurrency division may be winding down under pressure from Armanino’s non-cryptocurrency clients. These clients are concerned that the reputational risk to the firm would cast doubt on their audits.

Armanino, which had previously inspected OKX and Gate exchanges, was named a defendant in a collective lawsuit in November 2022. For failing to find irregularities at FTX.US after auditing the exchange last year. Collective action was filed by Stephen Pierce, an FTX customer who he claims lost $20,000.

Many accounting firms are afraid to work with cryptocurrency companies. Changpeng Zhao, Binance’s CEO, said this in an interview with CNBC on Thursday. When asked why Binance has not engaged an auditor from the “big four” (PwC, Deloitte, EY and KPMG). He replied that such firms “don’t even know how to audit crypto exchanges.”

The Mazars audit report on Binance’s reserves, published on December 7, drew criticism and sowed some panic in the cryptocurrency community. Customers of the exchange started withdrawing funds and the value of the BNB token started falling. Changpeng Zhao warned employees that a difficult period was coming. And urged to ignore the rumors and assured that the exchange “will survive any crypto winter.”

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