- Hackers breached Kronos Research API keys to siphon millions.
- Kronos Research was forced to halt operations.
- The market maker shared this was the first time since 2018 that it halted operations.
Kronos Research, a Taipei-based market maker, trading firm, and venture capital fund, received a $26 million blow over the weekend, forcing it to cease operations.
Kronos API Keys Compromised
On Sunday, November 19, Kronos Research sounded the alarm on Twitter about a security breach that involved unauthorized access to its API keys. The firm promptly halted all trading operations to conduct a thorough investigation and clarified that the losses incurred were unrelated to its equity. It also shared that it was actively working to resume trading as soon as possible.
Estimates by crypto sleuths, including ZachXBT, suggest that the market maker lost over $25 million in the breach. In a subsequent statement, Kronos confirmed that the losses exceeded $26 million but assured that these losses would be covered internally, ensuring no impact on partners.
Kronos shared that this was the first time since 2018 that it halted trading and was confident in bouncing back stronger from this setback. At press time, the market maker has yet to resume its trading operations.
On the Flipside
- Following Kronos’ breach, WOO X, a crypto exchange, also had to pause its operations temporarily.
- Q3 2023 was crowned as the most damaging quarter for crypto, reporting over $700 million in losses.
Why This Matters
The repercussions of Kronos Research’s breach have the potential to cascade across partner exchanges, subsequently influencing market dynamics, particularly in aspects of liquidity, volatility, and investor confidence.
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