CertiK faced threats from Kraken

CertiK faced threats from Kraken

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by Eve Adams

2 years ago


Experts from the company CertiK, specializing in blockchain security, identified several critical vulnerabilities in the centralized exchange Kraken. They reported that these vulnerabilities could lead to losses of hundreds of millions of US dollars (USD). Additionally, the specialists stated that representatives of the exchange threatened them. The experts pointed out a vulnerability in the deposit system.

The CertiK team conducted a thorough investigation into three main issues: the possibility for an attacker to fabricate a deposit transaction, withdraw fake funds, and the risk control and asset protection measures activated when requesting a large sum transfer.

Based on our analysis, the Kraken exchange failed the tests, indicating that the security system is compromised in several areas. Millions of dollars can be deposited into any account. A vast amount of fabricated cryptocurrencies, even worth more than $1 million, can be withdrawn and converted into other assets. During several days of testing, not a single alert was generated. Kraken responded and blocked our test accounts only a few days after we officially reported the incident, stated CertiK.

After CertiK notified Kraken of the issues, the exchange's security service classified the incident as «critical», the highest level of danger for the platform.

In the spirit of transparency and commitment to the Web3 community, we publicly disclose this issue to protect the security of all users. We also urge Kraken to stop threatening white hackers, stated CertiK representatives.

Despite resolving the issue, Kraken's security team threatened individual CertiK employees, stating they would not pay the due reward. Furthermore, Kraken did not specify the transfer deadlines and did not request addresses for sending the reward.

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