KipCoin

KipCoin, a China-based Bitcoin exchange and wallet service, announced a devastating breach on February 18, 2015, coinciding with Chinese Lunar New Year’s Eve, resulting in the loss of over 3,000 BTC, valued at approximately $720,000 USD. The hack, reported via KipCoin’s website and Weibo, saw hackers transfer funds to multiple blockchain addresses, with no reported theft of Chinese Yuan. KipCoin temporarily suspended all services, promising to cooperate with police after the Spring Festival holiday ending February 25, while withholding user funds pending investigation. The loss, at Bitcoin’s price of roughly $240 per coin per CoinGecko, fueled suspicion due to KipCoin’s questionable 22% daily interest offerings and prior expansion into fiat and futures trading, reminiscent of the MyCoin Ponzi scheme exposed weeks earlier, as noted by NewsBTC.

Community frustration mounted over KipCoin’s vague communication, with many on Reddit labeling it a potential exit scam rather than a genuine hack. Operating in 2015’s unregulated crypto environment, KipCoin provided no evidence of fund recovery, leaving users stranded. The incident amplified concerns about exchange transparency, prompting calls for mandatory reserve audits, two-factor authentication, and regulatory oversight to curb fraudulent platforms and protect the cryptocurrency ecosystem’s integrity.