Woo Network ‘s Founders Company Got Hacked! Cryptocurrency market maker Kronos reported unauthorized access to some API keys. The company suspended all trading activities while conducting an investigation into the incident.
According to ZachXBT, the estimated loss resulting from this security breach is about $22 million. Also, Kronos stated in its announcement, “In the name of transparency, about 4 hours ago, we experienced unauthorized access to some of our API keys. We have suspended all trading while conducting an investigation. Potential losses are not a significant part of our equity, and we aim to resume trading as soon as possible.”
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This incident occurred three months after an incident in which two engineers who were dissatisfied with unpaid bonuses messed with the code of the cryptocurrency quantitative trading team at Kronos Research before leaving the company. This situation had led the company to lose $1.4 million.
The Taipei court sentenced two people to a fixed prison term, but they were able to pay a fine to avoid serving their sentences. The connection between these two incidents is not unconfirmed.
The development led to a loss in the value of the WOO token, with the price declining by approximately 10%. The founding team of Woo Network includes the founding partners of Kronos Research, Jack Tan and Mark Pimentel.
Kronos’ security issue is a significant concern for the cryptocurrency market. Kronos is one of the world’s largest market makers, and this situation increases the risk of the company’s security issues spreading to the wider market.
The cryptocurrency market is already struggling with security concerns. This incident can shake investors’ trust in the market and negatively affect price movements. Kronos stated that it would take steps to compensate for the damage arising from the security breach. The company plans to announce the results of the investigation and the precautions it has taken for the public.