Synthetix founder speaks on Kucoin hack of $2.5m in SNX, millions in other DeFi coins

Blockchain analysts recorded a series of suspicious withdrawals from the company's hot wallets that suggested the crypto exchange was hacked.

Around eight hours after the withdrawals, it was revealed that a hack had happened, through which millions were lost in Ethereum, ERC-20 tokens, Bitcoin, EOS, and other crypto-assets.

Many "Decentralized" crypto projects sprung to take action: some forked their protocol to stop the hacker, some locked tokens to the hacker's address.

One such project that let the hacker sell his coins was Synthetix, one of the most prominent DeFi projects with $600 million worth of cryptocurrencies locked in its contracts.

Synthetix founder Kain Warwick commented on the situation in an extensive Twitter thread, explaining his thoughts on the situation.

Eth September 28, 2020.Don't leave funds on exchanges.

Warwick's first takeaway was that if you leave funds on exchanges, the onus on you.

"Turns out I had some SNX sitting on there from about six months ago So I write this SNX off immediately, if you have funds on an exchange and it gets hacked it is on you I really cannot stress this point enough. If you leave funds idle on an exchange for like six months and forget they are there you deserve to lose them. It is like leaving an envelope of cash on your doorstep for months."

The DeFi founder continued that funds should only be on exchanges if the user has a reason.

Forking the protocol to save the Synthetix would be dumb.