A crypto trading company in Taipei, known as Kronos Research, confessed to a security leak. This led to a $26 million hack due to unsanctioned access to its API keys.
This event put a temporary stop to trading actions on the Woo network. The Woo network is a notable platform for crypto trading.
Kronos Research announced the hack on November 19. The firm confirmed the security slip and stopped all trading activities to focus on the breach. They stressed that a detailed examination is currently happening.
Kronos Research assured its partners of its continued stability despite major losses. It also promised to cover all losses with no impact on its partners.
“Presently, we can confirm that the losses are about $26 million in crypto assets. However, Kronos continues to remain solid. All losses will be addressed internally. No partners will bear any impact,” stated Kronos.
2/ At present, we can confirm that the losses are about $26 million in crypto assets, and despite it being a sizable amount, Kronos remains in good standing. All losses will be covered internally, no partners will be affected.
— Kronos Research 🟠 (@ResearchKronos) November 19, 2023
While Kronos did not share specific details about the hacking event, crypto investigator ZachXBT reported a transfer of 12,800 ETH, valued at $25 million, to five unknown addresses linked to the event.
Kronos pledged to get services back for the crypto exchanges and token projects it backs. It said that this is the first time trading has been suspended since 2018, and they’re working for a quick bounce back.
Woo Network Faces Challenges: Safety Measures & Cyber Resilience
The aftermath hit Woo Network, a trading platform that relies mostly on Kronos Research for liquidity. WooX assures user fund safety.
Woo X declared in a note that client funds are safe. They’ve temporarily halted certain asset pairs because of the liquidity gap caused by Kronos’s trading suspension. The platform has opened up regular and perpetual trading and asset withdrawals.
– First and foremost, all client assets are safe
– TLDR our largest liquidity provider Kronos Research recently experienced a hack that caused them to pause all trading on WOO X
– Since Kronos Research is the primary liquidity provider for spot markets and around… https://t.co/sDR8QHvmZC
— WOO X (@_WOO_X) November 18, 2023
There was also a DDoS attack on the Woo Network’s homepage. The network is taking steps to improve CloudFlare. This will help avoid future disruptions. If users have problems, they’ve been advised to put tickets on the platform’s website to sort things out.
A Woo X customer mentioned that their withdraws seemed slower than normal due to heightened security measures. The data showed an approximate 6% fall in the value of the exchange’s native WOO token in the past day, down to $0.235.
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At the same time, Kronos Research and Woo Network are hard at work. They are investigating the hack and working tirelessly to get things running smoothly. Their focus? Keeping users safe and looking after their assets.