Kronos Research Crypto Hack — Trading Resumes After $25M Ether Token Theft

Taiwanese trading firm Kronos Research reported unauthorized access to some of its API keys, leading to an estimated loss of over $25 million.

The breach, which occurred over the weekend, prompted a temporary halt in trading activities as the firm conducted a thorough investigation.

Kronos Research, in a statement prioritizing transparency, acknowledged the security breach, emphasizing that the potential losses incurred are not a substantial portion of their equity.

The firm has paused all trading operations temporarily and is working diligently to resume normal activities as soon as possible.

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Independent cryptocurrency investigator ZachXBT estimated the losses to be over $25 million, equivalent to more than of 13,000 Ether (CRYPTO: ETH) tokens. 

WOO X, an exchange incubated by Kronos and where Kronos serves as a key market maker, issued a status update in response to the incident.

The exchange assured its clients that all customer assets remain secure.

However, due to Kronos Research being the primary liquidity provider for its spot markets and accounting for approximately 40% of liquidity in perpetual futures, WOO X temporarily suspended trading across its platform.

This precautionary measure was meant to protect users' positions from potential market volatility due to the reduced liquidity.

The exchange collaborated with other market makers to resume trading for major assets, particularly perpetual futures. Trading in both spot and perpetual markets, along with withdrawals, has now recommenced.

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