Cryptocurrencies

Cryptocurrency exchange Kraken revealed that the research team still had $3 worth of cash on hand.

Cryptocurrency exchange Kraken has revealed that its research team still has $3 million worth of digital assets seized as part of a recently discovered bug.

An anonymous “security researcher” discovered a serious security vulnerability and alerted the cryptocurrency exchange on June 9.

However, two accounts linked to the security researcher exploited this vulnerability to withdraw more than $3 million in digital assets, according to Nick Percoco, head of security at Kraken.

After withdrawing millions of dollars, security researcher demands reward for stolen funds, Percoco wrote in a June 19 article:

“Instead, they demanded a call with their business development team (i.e. their sales representatives) and did not agree to return any money until we provided an estimate of the amount in dollars that this error would have caused if they had not disclosed it. This isn’t hacking, it’s extortion!

The cryptocurrency was stolen directly from the Kraken vault. The exchange claims that no user funds were compromised.

Cointelegraph has contacted Kraken for comment.

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This is not White Hat Hacking: Kraken

One of the three Kraken accounts linked to the exploit has already completed a Know Your Customer (KYC) verification process for an individual claiming to be a security researcher, but whose identity has not yet been revealed.

The person who discovered the flaw first demonstrated the flaw by transferring $4 worth of cryptocurrency, which was enough to prove the flaw and collect “big rewards” from the Karken rewards program.

However, this person disclosed the breach to two other accounts where nearly $3 million was stolen from their Kraken accounts.

These actions are similar to extortion, and not the behavior of ethical hackers, according to Kraken’s Percoco:

“At the heart of transparency, today we are exposing this error to the industry. We have been accused of being irrational and unprofessional because we asked “white hat hackers” to return what they stole from us. Amazing.”

$3 Billion Stolen in Hacks – Why is Cryptocurrency Crime on the Rise? Source: Cointelegraph

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Cryptocurrency hacks in 2024 could exceed those in 2023

Cryptocurrency hackers and scalpers could be poised to have a more successful year in 2024 than in 2023.

In the first quarter of 2024, hackers stole $542.7 million worth of digital assets, an increase of 42% compared to the same period in 2023. Interestingly, private key leaks were the main reason for the ‘increasing exploits, not clever leaks. contracts. – Related achievements.

Hacked funds lost due to smart contract vulnerabilities fell 92% to $179 million in 2023, compared to $2.6 billion in 2022, according to Merkle Science’s “2024 Crypto HackHub Report.”

Total cryptographic losses due to vulnerabilities. Source: Merkel Science

More than 55% of hacked digital assets were lost due to private key leaks in 2023.

The cryptocurrency industry has suffered 785 hacks and exploits, resulting in a loss of nearly $19 billion over the past 13 years.

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