Ethereum

<p>Kronos Research, a Taipei-based crypto trading, market making and venture capital firm, has found itself in the crosshairs of a cyber attack.</p><h2 id="header-0">$25.6 million loss</h2><p>Hackers gained unauthorized access to the company’s API keys, resulting in losses exceeding $25.6 million spread across various cryptocurrencies, prompting a concern within the crypto community.</p><p>The breach was detailed by the company in a social media post on the X platform on Saturday. That <a href="https://x.com/ResearchKronos/status/1726013733888041376?s&#61;20" rel="noopener noreferrer nofollow">post</a> read:</p><p>“In the interest of transparency Around 4 hours ago, we experienced unauthorized access of some of our API keys. We paused all trading while we conduct an investigation. Potential losses are not a significant portion of our equity and we aim to resume trading as soon as possible.”</p><h2 id="header-1">On-chain sleuthing</h2><p>Investigations by crypto community members have followed, led by blockchain researcher ZachXBT. ZachXBT is a well-known anonymous persona in the crypto space, having earned a reputation for uncovering hacks, scams and unethical practices within the crypto sector.</p><p>In this instance, ZachXBT uncovered a trail of transactions originating from a Kronos Research account. The meticulous execution of the cyber attack was evident in six transactions involving 2,780 ETH, 2,540 ETH (repeated twice), 2,636 ETH, 4.93 ETH and 2,507.52 ETH, all directed to addresses controlled by the hacker.</p><p>Kronos Research has followed up with a tweet thread on X, acknowledging the gravity of the situation and confirming losses of approximately $25.65 million in crypto assets. Despite the alarming figures, the company sought to reassure stakeholders by emphasizing that the losses represent a relatively small fraction of its total equity. In a commendable display of accountability, Kronos Research pledged to absorb all losses internally, shielding its partners from the financial ramifications of the breach.</p><p>The Taiwanese firm <a href="https://x.com/ResearchKronos/status/1726203102842466650?s&#61;20" rel="noopener noreferrer nofollow">posted</a>:</p><p>“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.”</p><h2 id="header-2">Implications for Woo X</h2><p>The operational repercussions were swift and impactful, with Kronos Research opting for a temporary suspension of all trading operations. This decision rippled through to Woo X, the affiliated Taipei-based exchange and liquidity provider created by Kronos, which temporarily <a href="https://woo.org/blog/en/woo-x-resumes-business-as-usual-following-a-security-incident-with-one-of-its-market-makers" rel="noopener noreferrer nofollow">blocked</a> specific asset combinations due to liquidity concerns. Importantly, Woo X assured users of the security of their funds and later announced the resumption of spot and perpetual trading.</p><p>Looking forward, Kronos Research outlined its intention to resume trading operations in the coming days, contingent on favorable conditions.</p><p>The cyber attack on Kronos Research occurred against the backdrop of heightened cybersecurity concerns within the crypto space. According to blockchain security firm Certik, approximately $173 million was <a href="https://x.com/CertiKAlert/status/1725518203269382163?s&#61;20" rel="noopener noreferrer nofollow">lost</a> to crypto attacks in November alone. The Kronos Research breach follows on the heels of Poloniex’s $131 million hack, highlighting the persistent challenges faced by crypto platforms in securing user assets.</p>

Kronos Research experiences significant cybersecurity breach

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