Taipei-based trading firm, Kronos Research, disclosed unauthorized access to its API keys, resulting in a staggering loss of approximately 13,007 ETH, valued at $25 million. This breach, detailed on X, prompted a temporary halt in trading activities, impacting affiliated exchange Woo X.
Woo X assured the safety of client funds but paused specific asset pairs due to liquidity concerns stemming from Kronos’s trading suspension. While spot and perpetual trading resumed along with withdrawals, the breach’s implications echo concerns about cryptocurrency trading firm vulnerabilities and API key management challenges.
The incident sheds light on the continuous struggle to secure digital assets in the crypto sphere, emphasizing the critical need for robust security measures within the industry.
Amidst this breach, the broader crypto landscape has witnessed a surge in hacks and scams, with losses nearing a billion dollars over recent months. Certik reports attribute these incidents to diverse factors such as protocol exploits, exit scams, private key exploits, and oracle manipulation.
A notable exploit was the Mixin Network breach, causing a $200 million loss in September 2023, ranking as the year’s most significant exploit. Stake.com’s targeting resulted in a $41 million loss, ranking among the top ten hacks of the year.
Collectively, the top 10 hacks in 2023 accounted for 84% of the total stolen amount, surpassing $620 million. DefiLlama data highlights over $735 million in losses across 69 hacks in 2023, illustrating the persistent challenge of safeguarding crypto firms and DeFi protocols.
