Trading Suspended as Kronos Research Investigates API Key Breach

• The firm disclosed the compromise of several of their API keys on November 19th.
• ZachXBT discovered that almost $25 million had been syphoned off.

Kronos Research, a quantitative trading company, lost $25 million to hackers who gained access to the company’s API credentials. The firm disclosed the compromise of several of their API keys on November 19th. Subsequently, the business terminated its trading services on the platform.

After investigating the situation further, blockchain expert ZachXBT discovered that almost $25 million had been syphoned off into six other cryptocurrency wallet addresses. Based on the findings of the inquiry, a Kronos Research account made 6 transfers, containing 2,780 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507.52 ETH, to addresses belonging to the hacker.

Trading Halted

Kronos Research has suspended trading services momentarily while it investigates the theft of approximately 12,800 ETH and hopes to find the perpetrator. Potential losses do not represent a significant amount of its equity, according to the company, and trade will restart as soon as feasible.

As the number of cryptocurrency hacks continues to rise, it is imperative that potential backers do their homework before putting money into any given project. CertiK, a blockchain security company, stated that Q3 2023 is the most “damaging” quarter for cryptocurrencies.

The most common methods for breaching crypto ecosystems were private key attacks, exit scams, and oracle manipulation. After losing $320 million in Q1 2023 and $313 million in Q2 2023, digital assets were lost to numerous security events to the tune of almost $700 million in Q3 2023.

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