Security is one of the most important features before using a crypto exchange. Here is what we collected about KuCoin's security, reputation and more.
Past Hacks & Incidents
KuCoin was hacked in 2020 for $285 million via some of their hot wallets. Luckily, no customers were actually affected or lost any crypto. KuCoin recovered 84% of the funds and their insurance fund paid back the other 16%.
After the hack, KuCoin's CEO said they made improvements to their security and platform architecture. However, it's a good reminder why you should use non-custodial wallets.
Company Security Features
There is limited info online about KuCoin's company security features. We're not sure how they store users funds but here is what we do know:
- Partnership with "OnChain Custodian" to back its funds by insurance (not many details available)
- Bug bounty program - KuCoin will pay white hat hackers to find bugs and vulnerabilities
User Security Features
Here is a list of security features you'll see in your account settings. Most of these are optional:
- 2 Factor Authentication (via SMS or Google Authenticator app)
- Biometric login on app (eg. Touch ID)
- Add a 6 digit trading password for withdrawals, trades, etc
- View your login history (IP address, device, time etc)
- Restrict Login IP feature
- Email Safety Phrase to help identify legitimate KuCoin emails
- Login Safety Phrase
- Withdrawal Safety Phrase
Can You Trust KuCoin?
KuCoin is considered a trustworthy platform. They have 10+ million users in 200+ countries and multiple user security features such as 2 Factor Authentication, trading passwords and more.
However, you should not hold 100% of your assets on any centralized crypto exchange. There is always the risk of hacks, government confiscation and more. The safest way to store your crypto is on a hardware wallet (especially for large amounts).