Kronos Research Suspends Trading Activities Following an API Key Exploit
Kronos Research, the prominent trading platform in Taiwan, has been hit by a $25 million exploit. The hacking incident occurred on November 19 when the attackers gained unauthorized access to Kronos API keys.
The trading company confessed that an unknown user gained access to the company API keys. The discovery of the hacking incident attracted the attention of blockchain investigators to examine the losses and the severity of the attack.
Kronos Research Suffers a $25 Million Exploit
A statement from ZachXBT revealed that after compromising the company API keys, the attackers heisted assets worth $25 million. ZachXBT noted that the hackers transferred the $25 million to six different wallets.
The blockchain investigators observed that the Kronos funds were channeled in six different transactions to external accounts owned by the hackers.
A review of transaction history demonstrates that the hackers sent 2780, 2540,2636,4.93, and 2507.25 Ethers, respectively. The report revealed that hackers transferred the amount to different addresses to conceal their unlawful activities.
The hacking incident compelled the Kronos team to take preventive measures to ensure the remaining assets were out of danger. In an official communication, the Kronos group stated that the trading services would temporarily be unavailable for a thorough investigation.
Kronos Research Halts Trading Features
The suspension of the trading activities aims at enabling the Kronos team to bring down the suspects behind the $25 million exploit. The preventive move undertaken by the Kronos team has created fear among the customers.
Some customers blamed the exchange on the X platform for closing all activities on Woo X, one of its affiliate companies. Responding to the troubled customer, the Woo X officials assured the customers that their funds were safe and secure.
The official lamented that the suspension of Kronos has forced Woo X to halt the offering of some asset pairs to prevent the assets’ liquidity loss. The trading company remains optimistic that the recovery process will yield positive outcomes.
Rise of Crypto Crimes
After a thorough analysis, the Kronos team noted that the loss of 12,800 Ether constituted a small portion of the company equity. This implies that the Kronos team is in good standing despite the exploit.
Despite the losses, the Kronos team anticipates resuming operations as soon as possible to allow customers to trade their digital assets. In the meantime, the Kronos team has restored the spot and perpetual trading process.
Since Saturday, the Kronos team has been working round the clock to reduce the impact of the API keys exploit. Reportedly, from 2018, when Kronos research was first launched, the exchange remained in operation until last Saturday, when the firm was forced to suspend its operation temporarily. The Kronos team anticipates a significant bounce back after the technical team resolves the issue.
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