Kronos Research has decided to indefinitely halt its trading services following a massive security breach resulting in the theft of over 12,800 ETH, totaling a staggering $25 million. This incident has prompted an internal investigation to identify and apprehend the responsible party.
Unauthorized Access to API Keys, Hacker’s Windfall and Transactions Breakdown
On November 19, Kronos Research disclosed that an unauthorized entity had gained access to some of its API keys. The breach led to an immediate suspension of trading services on the platform. Notably, the firm emphasized that the potential losses incurred do not constitute a substantial portion of its equity.
Blockchain investigator ZachXBT delved into the matter and uncovered that the hacker successfully walked away with $25 million. The ill-gotten gains were funneled into six unique crypto wallet addresses through a series of transactions.
The specific breakdown reveals transactions of 2,780 ETH, 2,540 ETH (twice), 2,636 ETH, 4.93 ETH, and 2,507.52 ETH, respectively. All these transactions originated from a Kronos Research account and were directed to various addresses controlled by the hacker.
Positive Outlook Amid Investigation
While Kronos Research faces the challenge of tracking down the culprit, the firm remains optimistic about the outcome of the ongoing internal investigations. Despite the setback, the company assures stakeholders that the potential losses incurred do not represent a significant portion of its equity. The aim is to resume trading services as swiftly as possible.
Heightened Concerns in the Crypto Landscape
The incident at Kronos Research adds to the growing list of crypto-related hacks. Investors are urged to conduct thorough research before engaging with projects in the volatile cryptocurrency market. Blockchain security firm CertiK recently highlighted the third quarter of 2023 as particularly “damaging” for the crypto industry, underscoring the importance of robust security measures.
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