A hacker has managed to pilfer a staggering $25 million from Kronos Research, a quantitative trading firm, by gaining unauthorized access to its API keys.
The breach was unveiled by Kronos Research on November 19th when they discovered that an unauthorized entity had infiltrated their API keys.
As a precautionary measure, the firm swiftly halted its trading services on the platform. Fortunately, no financial losses were reported at that juncture.
Upon the disclosure of the breach, blockchain investigator ZachXBT delved into the matter and unearthed the shocking revelation that approximately $25 million had been funneled into six distinct cryptocurrency wallet addresses.
The investigation unveiled that the funds were moved in six separate transactions, totaling 2,780 Ether, 2,540 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507.52 ETH, respectively.
These transactions originated from a Kronos Research account and were sent to various addresses controlled by the hacker.
READ MORE:The Best Ways to Earn Passive Income with Cryptocurrency in 2023
Kronos Research has opted to indefinitely suspend its trading services while conducting an internal investigation to apprehend the individual responsible for the theft of over 12,800 ETH.
Despite this setback, the company remains optimistic about its future, stating, “Potential losses are not a significant portion of our equity, and we aim to resume trading as soon as possible.”
Kronos Research has yet to respond to Cointelegraph’s request for comment.
The escalating frequency of crypto-related hacks underscores the importance of thorough due diligence for potential investors in cryptocurrency projects.
CertiK, a blockchain security firm, recently disclosed that the third quarter of 2023 was the most “damaging” quarter for the crypto industry.
During this period, malicious actors employed a variety of techniques, including private key exploits, exit scams, and oracle manipulation, to compromise the security of crypto ecosystems.
Shockingly, the cumulative losses from security incidents during Q3 2023 exceeded $700 million, surpassing the losses incurred in the first and second quarters, which stood at $320 million and $313 million, respectively.
This alarming trend underscores the need for robust security measures and greater awareness within the cryptocurrency space as it continues to attract both investors and cybercriminals.
Discover the Crypto Intelligence Blockchain Council
