Kraken, a prominent cryptocurrency exchange, is facing extortion after a bug bounty report led to the theft of $3 million in digital assets. The incident began when CertiK, a blockchain security firm, identified critical vulnerabilities in Kraken's deposit system, which could potentially lead to hundreds of millions of dollars in losses. The vulnerabilities allowed a security researcher to demonstrate that they could be credited with cryptocurrency they did not deposit, enabling them to drain funds.
Hey @CertiK and @c7five This did not need to become a public he said, she said argument. It looks bad on both actors. Knowing both Certiks and Kraken's history I am inclined to support @krakenfx here. This looks like an extortion. White hat hackers don't hold funds hostage https://t.co/B95zDc0zlE
For context: Kraken disclosed a vulnerability where a security researcher demonstrated that they could be credited crypto for they didn’t deposit, and use that to drain funds. The “researcher” then either exploited the vuln themselves, or leaked to someone who exploited, for… https://t.co/2YGgs2aQ2N
CertiK recently identified a series of critical vulnerabilities in @krakenfx exchange which could potentially lead to hundreds of millions of dollars in losses. Starting from a finding in @krakenfx's deposit system where it may fail to differentiate between different internal… https://t.co/JZkMXj2ZCD
⚡️ JUST IN: @Krakenfx faces extortion after a bug bounty report leads to $3 million in stolen digital assets. https://t.co/RVvawWcWHP
[COINTELEGRAPH] #Kraken says its being extorted following bug bounty report