Crypto News- CertiK Reports Kraken Exploit, Accuses Exchange of ‘Threatening’ Its Researchers

Crypto News- CertiK Reports Kraken Exploit, Accuses Exchange of ‘Threatening’ Its Researchers

Crypto News– Blockchain security firm CertiK has publicly revealed itself as the ‘security researcher’ accused by cryptocurrency exchange Kraken of stealing $3 million worth of digital assets.

In a June 19 post on X, CertiK disclosed that it notified Kraken about an exploit that allowed them to withdraw millions of dollars from the exchange’s accounts. Kraken’s chief security officer, Nicholas Percoco, initially characterized the actions of an unnamed security team — later confirmed to be CertiK — as ‘extortion,’ alleging they demanded compensation equivalent to the potential losses if the bug had been exploited maliciously.

CertiK stated, ‘After successfully identifying and fixing the vulnerability, Kraken’s security team threatened individual CertiK employees with unreasonable demands for repayment without providing appropriate details.’

In the interest of transparency and community safety, CertiK opted to make their involvement public, urging Kraken to cease any threats against ethical hackers.

The security firm outlined a timeline starting from identifying the exploit on June 5 to alleging threats from Kraken on June 18. CertiK also indicated intentions to transfer the funds to an account accessible by Kraken, as stated in their communication with Cointelegraph.

In April, CertiK reported approximately $1 billion in digital assets lost to illicit activity in 2023. Previously, the firm identified vulnerabilities in the Wormhole bridge on Aptos and the Telegram app.

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