As a long-term crypto investor, I’ve seen my fair share of ups and downs in this volatile market. And let me tell you, the recent news about Kraken and Certik has left me feeling a mix of frustration and relief.
As a crypto investor, I’m relieved to share that Kraken’s Chief Security Officer, Nick Percoco, has announced good news following the recent security breach. The stolen funds have been successfully recovered by the exchange.
On June 20th, Percoco announced on X that the recovered funds had been successfully retrieved by the exchange. However, the Kraken Chief Security Officer didn’t specify the source, but previous disclosures pointed to Certik as the security firm implicated in the mishap.
The security research firm was alleged by Kraken to be responsible for the accounts that pilfered funds from the exchange’s treasury following Kraken’s detection of a vulnerability.
What happened?
On June 19, Certik announced via X that their team members were the ones who reached out to Kraken to report a significant issue they found in the cryptocurrency exchange’s account system.
Certik identified a vulnerability that could potentially enable attackers to generate large quantities of digital assets on Kraken.
As a researcher uncovering this intriguing finding, I discovered that my team at the research firm had taken advantage of a vulnerability and withdrew $3 million from Kraken. Subsequently, we made a demand for the exchange to uphold their bug bounty program.
According to Kraken and Certik’s post, the said employees did not return the funds when asked.
“Following initial victories in addressing and rectifying a vulnerability, Kraken’s security personnel have allegedly demanded that certain CertiK team members reimburse an incorrect sum of cryptocurrency within an unreasonable timeframe without disclosing any repayment addresses,” the statement reads.
Kraken called this extortion rather than honest actions of a white hat hackers.
Certik offered to return funds
Later, Certik posted on X that it would move the said funds to a wallet that Kraken could access.
Its statement said:
As a crypto investor, I find myself in a predicament with Kraken. Due to their failure to provide me with repayment addresses and the discrepancy in the amount requested, I’m left with no choice but to transfer the funds based on my records to an account that I believe Kraken can access. This is not the ideal situation, but it seems like the best option given the circumstances.
Thursdays announcement from Kraken confirmed that they have successfully retrieved the majority of the funds, with a minimal amount being deducted as transaction fees. Contrary to previous reports, Kraken assured its users that no customer funds had been affected during the recent technical glitch.
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2024-06-20 18:28