To Our Valued Users,
At KAI, the security and integrity of our platform and, most importantly, your assets, are our top priorities.
We regret to inform you that on June 3, 2025 (GMT+8), our operational wallet address was maliciously compromised in a targeted external attack. This resulted in the unauthorized transfer of 5 million USDT from our user protection fund. Our preliminary investigation has confirmed that this incident was the result of a sophisticated breach of our infrastructure.
We are working closely with blockchain security experts and relevant authorities to trace the attack and recover the assets. We understand the seriousness of this situation and are taking every possible measure to reinforce our systems, protect user funds, and ensure this does not happen again. We will continue to provide timely updates as our investigation progresses. Thank you for your continued trust and support.
1.Incident Summary
Initial analysis indicates that KAI’s financial wallet address was abnormally and unauthorizedly altered. Upon detection, we immediately activated the following emergency measures:
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Immediately suspended all deposit functions to prevent further capital inflows to the compromised address;
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Kept withdrawal functions fully operational to maintain user asset liquidity and accessibility;
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Established a dedicated incident response task force, collaborating with third party security experts and on-chain analysis teams to trace and recover the stolen funds;
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Reported the incident to relevant law enforcement authorities and are actively cooperating with the ongoing investigation.
2.Affected Assets and User Impact
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Asset involved: USDT
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Estimated amount: 5 million USDT
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User asset safety: Following a thorough examination, we can confirm that cold wallets and the majority of user assets remain unaffected. We are currently conducting detailed checks to verify whether any individual user funds were impacted. If any user is found to be affected, full compensation will be provided.
3.Follow-up Action Plan
At KAI, we take this incident with utmost seriousness. Our commitment to protecting our users and maintaining the highest standards of security remains unwavering. We are acting decisively and transparently to address the situation and prevent future risks.
The following recovery measures are already underway as part of our comprehensive response:
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Partnering with leading blockchain security firm TRM Labs to actively track the on-chain movement of stolen assets in real time, with the goal of preventing any laundering or further unauthorized transfers;
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Cooperating with major global exchanges to blacklist the addresses involved;
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Launching a platform-wide security upgrade initiative to reinforce core infrastructure, enhance access control protocols, and proactively eliminate potential vulnerabilities;
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A comprehensive user compensation plan will be announced immediately upon conclusion of the ongoing investigation. Dedicated support channels will be provided for any affected users to submit claims. To ensure accessible and timely communication, we are also launching localized customer service support in Arabic, German, Spanish, Portuguese, Korean, Indonesian, and Vietnamese. English support remains fully available for all global users.
4.Our Commitment to Users
We sincerely apologize for the disruption and concern caused by this incident. KAI will raise an additional $5 million in funds, dedicated to supporting user transactions and withdrawals, ensuring stable platform operations and safeguarding all user rights and interests. Thank you for your continued trust and support.
We sincerely apologize for the disruption and concern this incident may have caused. At KAI, we remain fully committed to protecting our users and upholding the integrity of our platform.
To reinforce this commitment, KAI will raise an additional $5 million in dedicated funds to support user transactions and withdrawals, ensure uninterrupted platform operations, and safeguard the rights and interests of all users.
Thank you for your continued trust and support. We will get through this — stronger, more resilient, and more committed than ever to your security.
KAI Security & Risk Control Team
June 4, 2025
KAI Community
Our Commitment to Compliance
KAI has always placed great importance on regulatory compliance and strictly adheres to the requirements of authorities in all operating jurisdictions. We currently comply with and operate under regulatory frameworks across multiple jurisdictions, including but not limited to: MiCA (EU), VARA (Dubai), MSB (USA), Saint Vincent, and New Zealand. We also remind users to comply with the applicable laws and regulations in their respective locations.
KAI reserves the right, at its sole discretion and at any time, to modify, change, or cancel this announcement for any reason without prior notice.
Disclaimer: Digital assets are subject to high market risk and price volatility. Their value may fluctuate significantly due to market movements. In particular, contract trading involves substantial risk and, in the event of extreme market volatility, may result in the full liquidation of your margin balance.
You may incur partial or total losses on your investment, and such risks must be borne solely by you. Before trading, please carefully evaluate your financial situation, risk tolerance, and investment objectives, and make decisions based on your individual circumstances.
KAI is committed to providing a secure and stable trading environment and to safeguarding users' assets and transaction operations. However, market risks cannot be fully predicted. We kindly ask that users understand and manage their risks responsibly.
This content is for general informational purposes only and does not constitute financial, investment, or legal advice.
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