In a major setback, quantitative trading firm Kronos Research experienced a security breach resulting in a hacker pilfering over 12,800 ETH, equivalent to $25 million. The unauthorized access to the firm’s API keys prompted Kronos Research to immediately halt trading services while launching internal investigations.
The breach was discovered on November 19, and subsequent blockchain analysis by investigator ZachXBT revealed that the stolen funds were transferred to six distinct crypto wallet addresses. The transactions, ranging from 2,507.52 ETH to 2,780 ETH, were traced from a Kronos Research account to addresses controlled by the hacker.
Despite the significant breach, Kronos Research reassured stakeholders that the potential losses represent an insubstantial portion of its equity. The firm is committed to a thorough investigation and aims to resume trading operations promptly.
The incident at Kronos Research adds to the growing list of crypto hacks, underscoring the importance of diligent research for investors. Blockchain security firm CertiK’s recent report highlighted Q3 2023 as the most damaging quarter for the crypto industry, with over $700 million in digital assets lost to various security incidents, including private key exploits, exit scams, and oracle manipulation.
As Kronos Research addresses the aftermath of the breach, the broader crypto community faces ongoing challenges in bolstering security measures to protect against evolving cyber threats.