Greetings Kambrians. We hope this finds you well. It’s time for a KuCoin security incident update. Last week, we got the unfortunate news that Kambria’s highest volume exchange, KuCoin, had been breached by nefarious hackers. At least two of their hot wallets were tragically drained, and with it, at least 400 million KAT were stolen. The total amount of cryptocurrencies stolen are not known to us, but it appears that over 200 million dollars worth of KuCoin users’ crypto tokens have been taken. This represents a critical problem for the project, as this would represent roughly 30% of the total circulating supply of our token.
Many of you have reached out to us asking what will be done about this problem, and as we have said before, we will not allow our community to be harmed by the actions of these bad actors. We have contemplated this decision and determined that the best course of action moving forward will be to create a new smart contract and set this as the active KAT token. We will then distribute the new token to all existing wallets that hold KAT, excluding the hackers wallet. We will be excluding the hacker’s address, and returning KAT to all of the wallets prior to the snapshot. This solution will help render the stolen tokens useless and the value of KAT will not be affected. Rest assured, we value our community, and do not want a single person harmed by this event.
All exchanges will be notified to update to use this new smart contract for trading for a simple transition. No changes to users’ balances are expected. We will be working with KuCoin to consider the best solution for the stolen KAT. We want to make every effort to ensure that this will not happen again. However, please rest assured that we will try our best to make sure that all KAT holders on KuCoin can receive full compensation for this catastrophic event. Thank you for your continued patience as we work with our exchange partners on this resolution.
Additionally, our token swap for those users who wish to swap their BEP-2 KAT and ERC-20 KAT will take place soon after we have successfully migrated our chains over to the new contract. Look forward to hearing more details from us concerning this one-time event in the coming weeks.