Taiwan-based Kronos Research recently experienced a significant security breach, incurring an estimated $25 million loss. The breach involved unauthorized access to API keys, resulting in the loss of about 13,007 ETH, valued at $25 million. The company announced the incident on November 18 through social media. Despite the loss, Kronos stated that it wasn’t a substantial portion of its equity.
Blockchain researcher ZachXBT noticed significant Ether outflows from a connected wallet, totaling over $25 million. Local exchange Woo X, linked to Kronos, briefly suspended certain trading pairs to manage the liquidity issue but has since resumed normal trading and withdrawals. The exchange confirmed that client funds are safe. Kronos is investigating the breach and has not provided further details on the extent of the losses.
The incident has raised concerns about the security of cryptocurrency trading firms, especially regarding API key management. Kronos, known for its crypto research, marketing, and investment, faces severe financial consequences from the breach. This event highlights the ongoing challenges in protecting digital assets and the importance of strong security in the crypto trading industry. Organizations are advised to prioritize cybersecurity to prevent similar breaches.
The crypto industry has recently seen a rise in significant hacking incidents, with losses nearing a billion dollars. According to Certik, these incidents involve protocol exploits, exit scams, private key compromises, and oracle manipulation. Notable incidents include the Mixin Network exploit in September 2023, resulting in a $200 million loss, and a $735 million loss at Stake.com, making it one of the year’s largest hacks.
The top 10 hacks in 2023 represent 84% of the total stolen amount, with over $620 million taken in those attacks. DefiLlama reports that cybercriminals have caused over $735 million in losses through 69 hacks in 2023. While 2023 has seen fewer losses than 2022, which had over $3.2 billion stolen across 60 hacks, these incidents emphasize the need for improved security in the cryptocurrency industry and the vital importance of robust protocols to protect digital assets.