CertiK Admits to $3 Million Crypto Exploit on Kraken, Denies Extortion Claims
Summary:
CertiK, a blockchain security company, has claimed responsibility for the removal of $3 million in digital assets from cryptocurrency exchange Kraken by exploiting a loophole. The firm has been accused by Kraken of extortion for refusing to return the funds without an agreed speculative restitution. However, CertiK defended its actions, arguing they were seeking to protect users and maintain transparency. The disclosure has divided the crypto community, with many blaming CertiK. The firm intends to move the funds to an account accessible to Kraken.
In a recent disclosure, blockchain security company CertiK has admitted being behind the said purloining of $3 million in digital assets from cryptocurrency exchange, Kraken. As asserted in a post on June 19, CertiK claimed the exploit alerted the firm to a loophole that was exploited resulting in the withdrawal of millions from Kraken’s coffers. Allegedly, CertiK was the mystery security team accused of extortion by Nicholas Percoco, the Chief Security Officer at Kraken, for the refusal to revert the funds until a speculative restitution was agreed based on the inferred potential damage had the bug not been disclosed.
CertiK retorted that: "following initially fruitful conversations about uncovering and addressing the vulnerability, Kraken's security unit proceeded to coerce individual CertiK staff to return an amount of crypto that didn't tally within an impractical timeframe. This was without the provision of return addresses." To reinforce their dedication to open disclosure and integrity towards the Web3 community, it was expressed that it deemed it necessary to go public for the overall security of users while imploring Kraken to refrain from threats launched against ethical hackers.
CertiK informed Cointelegraph that it had intentions of moving the funds into an account accessible to Kraken. However, the initial response from the cryptocurrency community seemed to favor Kraken, criticizing CertiK's conduct and denying it the ethical hacker status. This news story is still developing with updates to follow once further information becomes available.
Published At
6/19/2024 9:47:53 PM
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