A recent incident involving a security flaw at crypto exchange Kraken has resulted in the exploitation of $3 million in digital assets by a rogue security research company. Kraken’s Chief Security Officer Nick Percoco detailed the situation, explaining that a bug in the exchange’s funding system allowed malicious actors to artificially inflate their account balances. After fixing the bug, it was discovered that three accounts had taken advantage of this flaw, resulting in the unauthorized withdrawal of funds from Kraken’s treasury.
Attempts to contact the individuals responsible for returning the funds were unsuccessful, as they instead demanded payment for potential damages caused by the bug. Percoco condemned this behavior as unethical and criminal, stating that Kraken is now treating the incident as a criminal matter and is collaborating with law enforcement.
Kraken has not yet provided further comment on this incident.
