Kronos Research Halts Operations Following Security Breach and Loss of $26 Million
Kronos Research, a major market maker, trading firm, and venture capital fund based in Taipei, has ceased all trading operations due to a significant security breach. The breach, revealed in a post on X (formerly Twitter), involved unauthorized access to the company’s API keys, resulting in a massive loss of cryptocurrencies. On-chain detective ZachXBT tracked the outflow of funds from Kronos’ wallet, estimating the losses to be over $25 million in Ether. The company confirmed the losses to be approximately $26 million.
Internal Measures and Operational Impact
In the wake of the breach, Kronos Research has launched a comprehensive investigation to determine the extent and source of the intrusion. The firm has assured its partners and stakeholders that while the losses are substantial, they do not represent a significant portion of its capital. Furthermore, it stated that all losses would be covered internally, ensuring that no external parties would be affected. Despite this setback, Kronos is committed to resuming its trading operations as soon as possible.
Domino Effect on DEX WOO X
The security breach at Kronos Research has also had an impact on WOO X, a decentralized cryptocurrency exchange where Kronos operates as a market maker. Following the incident, WOO X temporarily suspended all trading operations to safeguard user positions and maintain market stability. The exchange has since resumed trading and assures that all customer funds are secure.