Is Certic taking the Kraken for millions? Here’s what’s going on

Blockchain security firm CertiK Walk forward Cryptocurrency exchange Kraken, which is believed to be the entity behind the hack on Wednesday, was identified as White Hat.exploitationHe said.

Kraken CSO Nick Percoco described the exchange as a loss of nearly $3 million.Criminal case“Coordinating efforts with law enforcement to recover money after using a team of tech-savvy researchers earlier in the day.”Independent bugHe said.

CertiK defended his actions on Twitter (pronounced X) by claiming he had the Kraken. threatened employees in the organization. CertiK found that the total amount of money Kraken claimed back was “disproportionate” compared to the crypto it took.

He also argued that Certike was given too little time to return the allegedly stolen funds.

The previously unnamed researchers were able to steal millions of dollars in crypto from Kraken by withdrawing funds into their accounts before deposits were completed, Percoco said. The attackers “could have effectively stamped assets,” he said. He wrote.

CertiK has stated that it has often used bugs as part of its investigation when trying to assess the scope of Kraken's security vulnerabilities. Although the exchange could not provide an address for the refund, Certike said it was sending crypto to a digital wallet that Kriken could access.

White-hat hacking is often described as an ethical technique for technical improvement, with the goal of identifying vulnerabilities in a given system. The bug bounty provided in connection with the exploit, however, disclosed only $4 of the stolen crypto Percoco. He wrote.

Percoco on top He said he deserved it. The malicious actor will not agree to return any money until the estimated dollar cost of the exploit is provided.

“Millions [of] The crypto dollar is out [thin] Air, and no real Kraken user assets were directly involved in our research activities,” Certike wrote in his defense, echoing Percoco's assertion that funds were missing from Kraken's coffers.

Taylor Monahan—former CEO and founder of Ethereum wallet manager MyCrypto, acquired by Consensys to fold into MetaMask in 2022—He wrote On Twitter, Certike expressed his fear of Kraken's lawyers, damage to his reputation, and how the brouhaha was affecting Certike's internal culture.

She pointed out that because they have several crypto projects that have been audited by Certike He was a victim of exploitation in the pastA new hypothesis has already been circulating online that there may be inside jobs.

“The real question should be why Kraken's defense-in-depth system was unable to detect so many verification transactions,” CertiK responded to Monahan. This is what we are testing.

Edited by Ryan Ozawa.