In a recent development, Taipei-based cryptocurrency trading firm Kronos Research fell victim to a security breach, resulting in a substantial $26 million hack. The breach, which involved unauthorized access to Kronos Research’s API keys, temporarily halted trading activities on the Woo network, a prominent cryptocurrency trading platform.
Kronos Research’s Public Acknowledgment
Kronos Research made a public announcement on November 19, confirming the security breach and subsequent hack. In response to the incident, the company promptly suspended all trading operations and launched an investigation into the breach.
Despite the significant losses, Kronos Research assured stakeholders of its financial stability and committed to covering all incurred losses internally, ensuring that partners would not be affected.
“In spite of the losses amounting to about $26 million in crypto assets, Kronos remains in good standing. All losses will be covered internally, and no partners will be affected,” stated Kronos Research.
While specific details about the hack were not disclosed by Kronos, crypto investigator ZachXBT revealed a transfer of 12,800 ETH (Ethereum) valued at $25 million to five new addresses associated with the incident.
Commitment to Recovery and Service Restoration
Kronos Research expressed a commitment to restoring services for the crypto exchanges and token projects it supports. This incident marked the first trading suspension for Kronos since 2018, and the company aims for a swift recovery.
Woo Network’s Response and Impact
The aftermath of the hack had a cascading effect on the Woo Network, a cryptocurrency trading platform heavily reliant on Kronos Research as its primary liquidity provider. Woo X, in a statement, reassured users about the safety of client funds but announced a temporary pause on specific asset pairs due to the liquidity gap resulting from Kronos’s trading suspension.
Woo Network faced additional challenges with a distributed denial-of-service (DDoS) attack on its homepage. The platform is implementing measures to optimize CloudFlare to mitigate potential future disruptions, and users experiencing issues were advised to submit tickets on the platform’s website for resolution.
Despite the challenges, Woo Network has resumed spot and perpetual trading activities and asset withdrawals. However, one user noted that withdrawals were being processed slower than usual due to intensified security checks.
The incident has also had a noticeable impact on the exchange’s native WOO token, with data indicating a roughly 6% decline in value within the last day to $0.235.
As the investigation into the hack continues, both Kronos Research and Woo Network are working diligently to restore full operational stability, prioritizing user safety and asset protection.