Cryptocurrency quantitative trading firm Kronos Research was victimized by a cyberattack that resulted in the theft of $25 million worth of digital assets. On November 19th, Kronos disclosed on X (formerly Twitter) that an unauthorized third party had obtained access to several of its API keys and initiated transfers of user funds without permission.
According to on-chain analytics performed by blockchain investigator ZachXBT, the total loss is estimated to be around 12,800 ETH, which amounts to approximately $25 million at current market prices. The hacker strategically moved the stolen funds across six different cryptocurrency wallet addresses in an attempt to cover their tracks.
In the wake of this security breach, Kronos immediately suspended all trading services on its platform indefinitely until internal investigations are completed. The firm expressed optimism about identifying the attacker and recovering the stolen assets but provided no timeline on when operations will resume as normal.
As one of the largest market makers providing up to 40% of liquidity across spot and derivative markets on the Woo X exchange, Kronos’ trading halt also impacted operations at Woo X. With liquidity drying up, Woo X took preventative measures to temporarily suspend trading for certain asset pairs in order to protect user funds.
Woo X quickly assured customers that all funds stored on the exchange remained secure. They also engaged in discussions with alternative market makers to restore liquidity. The proactive measures paid off – on the morning of November 19th, Woo X announced it had established connections with new liquidity providers and resumed spot, perpetual, and withdrawal functionality.
While Woo X strives to return to normal operations, the Kronos security breach remains an evolving situation under investigation. Both firms are determined to get to the bottom of the hack and return impacted funds to their rightful owners.
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