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Kraken's $3 Million Security Breach: Extortion Following Bug Bounty Report

Jun 19, 2024

Kraken's $3 Million Security Breach: Extortion Following Bug Bounty Report
Kraken's $3 Million Security Breach: Extortion Following Bug Bounty Report
Kraken's $3 Million Security Breach: Extortion Following Bug Bounty Report

Kraken has reported a security incident involving a bug that allowed the unauthorised withdrawal of $3 million in digital assets from its treasury. The exchange confirmed that no user funds were affected by the exploit. According to Kraken's Chief Security Officer, Nicholas Percoco, the bug was initially reported by an anonymous security researcher on June 9. However, instead of returning the funds after disclosure, the researcher demanded a reward and engaged in what Kraken has labelled as extortion. The exchange is now collaborating with law enforcement to recover the stolen assets. This incident underscores ongoing challenges in securing cryptocurrency platforms despite efforts like bug bounty programs.