The Taiwan-based cryptocurrency trading company Kronos Research has disclosed a security breech that allowed unauthorized access to its API keys, leading to a $26 million hack.
Due to this incident, trading on the popular cryptocurrency trading platform Woo network was momentarily halted.
Researcher Kronos Recognizes Hack
Kronos Research made the hack public on November 19. The company confirmed the security lapse and immediately stopped all trading in order to address the breach, stating that an investigation is being conducted.
Despite the large losses, Kronos Research reassured stakeholders of its solid standing. It also promised to pay out all losses with no negative effects on partners.
“At this time, we can confirm that the losses amount to roughly $26 million in cryptocurrency assets. Despite this substantial sum, Kronos maintains its positive standing. No partners will be impacted; all losses will be internally covered, according to Kronos.
Crypto investigator ZachXBT disclosed a transfer of 12,800 ETH, valued at $25 million, to five new addresses connected to the incident, despite Kronos not going into details about the hack.
Kronos pledged to bring back services for the token projects and cryptocurrency exchanges that it backs. It stated that it was experiencing its first trading halt since 2018 and that it was hoping for a speedy recovery.
1/ Since 1:20 am (GMT+8), our team has been working round the clock to minimize the impact and resume trading operations, following a hacking incident that involved unauthorized access to our API Keys. https://t.co/t2cP9s69sZ
— Kronos Research 🟠 (@ResearchKronos) November 19, 2023
Kronos Hack Disrupts Woo Network
Woo Network, a trading platform that primarily relies on Kronos Research as its liquidity provider, was impacted by the aftermath.
Woo X issued a statement assuring users that client funds are secure and announcing a temporary halt on particular asset pairs because of the liquidity gap brought on by Kronos’s trading suspension. As of the time of publication, the platform had resumed asset withdrawals as well as spot and perpetual trading.
Additionally, Woo Network’s homepage was subject to a distributed denial-of-service (DDoS) attack. In order to minimize possible future disruptions, the network is putting CloudFlare optimization measures into place. It was suggested that users who were having problems file tickets on the platform’s website so that they could be fixed.
A Woo X user noticed that withdrawals were being handled more slowly than normal.
According to CoinBrit data, the native WOO token value on the exchange dropped to $0.235 in the last day, a decrease of about 6%. Kronos Research and Woo Network are working hard to restore complete operational stability while guaranteeing user safety and asset protection while the hack is still being investigated.