Taipei-based crypto trading firm Kronos Research acknowledged a security breach resulting in a $26 million hack from unauthorized access to its API keys.
This incident temporarily suspended trading activities on the Woo network, a significant crypto trading platform.
Kronos Research Acknowledges Hack
On November 19, Kronos Research publicly disclosed the hack. After confirming the security lapse, the firm halted all trading operations to address the breach, emphasizing that an investigation is underway.
Kronos Research assured stakeholders of its stable standing despite the significant losses. It also pledged to cover all losses without impact on partners.
“At present, we can confirm that the losses are about $26 million in crypto assets, and despite it being a sizable amount, Kronos remains in good standing. All losses will be covered internally, no partners will be affected,” Kronos said.
Though Kronos did not delve into specifics regarding the hack, crypto investigator ZachXBT revealed a transfer of 12,800 ETH, valued at $25 million, to five new addresses associated with the incident.
Read more: Who Is ZachXBT, the Crypto Sleuth Exposing Scams?
Kronos expressed its commitment to restoring services for the crypto exchanges and token projects it supports. It added that this marked its first trading suspension since 2018 and aims for a swift recovery.
Woo Network Disrupted by Kronos Hack
The aftermath affected Woo Network, a trading platform heavily reliant on Kronos Research as its primary liquidity provider.
In a statement, Woo X reassured users of the safety of client funds and announced a temporary pause on specific asset pairs due to the liquidity gap resulting from Kronos’s trading suspension. The platform has resumed spot and perpetual trading activities and asset withdrawals as of press time.
Woo Network additionally faced a distributed denial-of-service (DDoS) attack on its homepage. The network is implementing measures to optimize CloudFlare to mitigate potential future disruptions. Users encountering issues were advised to submit tickets on the platform’s website for resolution.
One Woo X user pointed out that withdrawals were being processed slower than usual due to intensified security checks.
BeInCrypto’s data indicated a roughly 6% decline in the exchange’s native WOO token value within the last day to $0.235. Meanwhile, the hack remains under investigation, with Kronos Research and Woo Network working diligently to restore full operational stability while ensuring user safety and asset protection.
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