Taipei-based cryptocurrency trading and investment firm, Kronos Research, engages in negotiations with a hacker who recently absconded with $26 million from the company’s treasury. In a bold move, Kronos Research reaches out to the hacker, proposing the return of 90% of the pilfered funds in exchange for dropping any further pursuit, as revealed by Etherscan.
Unauthorized Access and Stolen Assets
Last week, Kronos reported an unauthorized entity gaining access to its API keys, leading to a substantial loss of $26 million in crypto assets, primarily in stablecoins. The firm assures internal coverage of all losses, safeguarding partners from any adverse effects.
Public negotiations between hackers and victims, conducted on-chain, are becoming more prevalent in the crypto space. Notably, KyberSwap and Curve Finance previously engaged in similar negotiations, offering bounties to hackers in exchange for the return of stolen funds.
Increased Incidents in DeFi Sector
The incident adds to the growing list of cybersecurity challenges faced by the decentralized finance (DeFi) sector. According to DeFiLlama, over $1.2 billion has been pilfered from DeFi protocols this year alone, highlighting the persistent vulnerabilities in the space.
Kronos Affirms Financial Standing
Despite the substantial loss, Kronos asserts its financial standing remains strong, assuring stakeholders that all losses will be internally covered, and partners will not be adversely affected by the breach. The firm’s proactive approach in negotiations reflects a broader trend in addressing cybersecurity incidents in the crypto industry.