Trading Firm Kronos Loses $25 Million in Ether After API Key Breach

Taipei-based trading firm Kronos Research experienced an unauthorized breach of its API keys on Saturday, the company revealed in a post on social media platform X. 

While Kronos stated that the potential losses were “not a significant portion of our equity,” blockchain researcher ZachXBT tracked sizable ether outflows from a related wallet, totaling over $25 million worth of the cryptocurrency. 

In response to the security incident, Kronos has paused all trading operations. However, this has led to liquidity issues on cryptocurrency exchange Woo X, which was incubated by Kronos and relies on the firm as a key market maker. 

In a statement, Woo X briefly halted certain trading pairs due to the loss of liquidity but has since resumed spot and perpetual trading as well as withdrawals. The exchange emphasized that client funds remain safe. Kronos is still investigating the unauthorized access and has not provided further details on the scale of losses.

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2023-11-19 14:28