In a startling revelation, quantitative trading firm Kronos Research disclosed that a hacker managed to abscond with $25 million after gaining unauthorized access to its compromised API keys. The breach prompted Kronos Research to halt its trading services on the platform as an immediate response.
The incident came to light on Nov. 19 when Kronos Research acknowledged the breach and subsequently suspended its trading activities. At the time of the announcement, the firm reported no losses. However, further investigation by blockchain expert ZachXBT uncovered that approximately $25 million had been funneled into six distinct crypto wallet addresses.
The six transactions, totaling 12,800 ETH, were detailed as follows: 2,780 ETH, 2,540 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507.52 ETH. These transfers originated from a Kronos Research account and landed in various addresses controlled by the hacker.
While Kronos Research temporarily ceases trading services to conduct internal investigations and track down the perpetrator, the firm expresses optimism about the situation. Despite the substantial loss, Kronos Research assured stakeholders that the potential losses do not constitute a significant portion of their equity. The company aims to resume trading at the earliest opportunity.
Cointelegraph reached out to Kronos Research for further comment, but as of now, there has been no immediate response from the trading firm. The incident underscores the persistent challenges and vulnerabilities faced by financial institutions in the rapidly evolving landscape of digital assets and trading platforms.
