Taipei-based crypto trading firm Kronos Research acknowledged a security breach that resulted in a $26 million hack from unauthorized access to its API keys.
This incident temporarily suspended trading activities on the Woo network, a major crypto trading platform.
Kronos Research Acknowledgments Hack
On November 19, Kronos Research published the hack. After confirming the security breach, the firm halted all trading activities to address the breach and stressed that an investigation is underway.
Kronos Research assured stakeholders of its stable status despite the significant losses. It also promised to cover all losses without affecting partners.
“Currently, we can confirm that the losses are around $26 million in crypto assets, and despite being a significant amount, Kronos remains in good standing. All losses will be covered internally, no partners will be affected,” Kronos said.
Although Kronos did not delve into the details of the hack, crypto researcher ZachXBT revealed a transfer of 12,800 ETH worth $25 million to five new addresses in connection with the incident.
Read More: Who Is ZachXBT, The Crypto Sleuth Who Uncovers Scams?
Kronos expressed its commitment to restore services to crypto exchanges and token projects it supports. It added that this marked its first trading suspension since 2018 and aims for a quick recovery.
Woo Network Disrupted by Kronos Hack
The fallout affected the Woo Network, a trading platform heavily tied to Kronos Research as its primary liquidity provider.
In a announcement, Woo X assured users of the safety of client funds and announced a temporary pause on specific asset pairs due to the liquidity gap resulting from Kronos’ trading suspension. The platform has resumed spot and perpetual trading activities and asset withdrawals as of press time.
Woo Network also faced a distributed denial-of-service (DDoS) attack on its website. The network is implementing measures to optimize CloudFlare to mitigate potential future disruptions. Users who encountered issues were asked to submit tickets on the platform’s website for resolution.
A Woo X user pointed out that withdrawals were processed more slowly than usual due to increased security checks.
BeInCrypto’s data indicated an approximately 6% drop 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 security and asset protection.
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