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According to Nick Percoco, Kraken's chief security officer, the exchange has <a href="https://x.com/c7five/status/1803773589226995826" rel="noopener noreferrer nofollow">managed</a> to return its funds following what it described as an "extortion" attempt. It has lost only a small amount of money to fees.&nbsp;
As&nbsp;<a href="https://u.today/top-exchange-kraken-discovers-extremely-critical-bug" rel="noopener noreferrer nofollow">reported by U.Today</a>, a security researcher from an undisclosed firm notified the exchange about a critical bug that made it possible to effectively print money out of this air by receiving funds without completing deposits.&nbsp;
Instead of submitting a bug report, the researcher initially informed two other individuals about the vulnerability, which resulted in Kraken losing $3 million from its treasury.&nbsp;
The researchers refused to return the funds and started demanding a call with the firm's sales representatives. Kraken accused the firm of extortion and contacted law enforcement.&nbsp;
In another twist, well-known blockchain security firm CertiK revealed that it was responsible for discovering the bug. It claimed that Kraken had started demanding a mismatched amount of funds while threatening its employees. CertikK added that the multi-million withdrawals were actually part of its testing. "The real question should be why Kraken’s in-depth defense system failed to detect so many test transactions," the firm said.&nbsp;
In his original X thread, Percoco claimed that Kraken never had an issue with "legitimate" researchers.&nbsp;
CertiK later&nbsp;<a href="https://x.com/CertiK/status/1803646511110365426" rel="noopener noreferrer nofollow">clarified</a> that it did not actually participate in Kraken's bounty program and was not seeking a reward. Moreover, it insists that the exchange was informed about the vulnerability in a timely fashion. However, the amount of funds that it has returned is different from the original sum that was requested by Kraken.&nbsp;
This is not the first time that CertiK has become a source of controversy. The firm would previously attract criticism and mockery after multiple projects that passed its audits ended up being hacked. &nbsp;

Major US Exchange Kraken Gets Funds Back After "Extortion" Attempt

U_Today

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