Another security issue has emerged in the blockchain industry, which attracts investors with its technological solutions. According to reports, a black hat hacker successfully bypassed the security firewall and gained access to API keys on the website, subsequently stealing $25 million worth of crypto assets belonging to the renowned trading firm, Kronos Research.
Kronos Research Suspends Services
Kronos Research officials announced to the public that an unauthorized organization had accessed certain API keys during the incident that occurred on November 19. Following this unfortunate development, the company suspended its trading services on the platform, but no losses were reported by the company officials in the announcement.
Renowned blockchain detective, ZachXBT, closely monitored the incident and discovered that unique crypto wallet assets worth approximately $25 million were seized. According to ZachXBT, the attacker carried out six transactions, transferring 2,780 ETH, 2,540 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507 ETH respectively from a Kronos Research account to various addresses owned by the hacker.
Kronos Research announced that it has indefinitely suspended its trading services until the culprit, who seized more than 12,800 ETH in assets during the investigations, is apprehended. The company expressed its optimism regarding the outcome of the process with the following statement:
“Potential losses are not a significant portion of our equity, and we aim to resume trading as soon as possible.”
The Looming Danger for the Crypto Sector
The increasing number of crypto hacking incidents highlights the need for investors to conduct comprehensive research on crypto projects they intend to invest in. Recently, CertiK, a blockchain security firm, declared the third quarter of 2023 as the least damaging quarter for cryptocurrencies.
Techniques such as seed phase attacks, rug-pull scams, and oracle manipulation, commonly used to hack crypto ecosystems, emphasize the necessity for action in this field. In the third quarter of 2023, over $700 million worth of crypto assets were lost due to various security attacks, surpassing the losses of the first quarter ($320 million) and the second quarter ($313 million).
