CertiK Accused of Stealing $3 Million from Kraken in Alleged Extortion Scheme

• CertiK identified a vulnerability in Kraken's system, leading to $3 million in digital assets being withdrawn.
• Kraken accused CertiK of extortion, demanding repayment for the funds taken.
• CertiK claimed Kraken threatened employees and demanded a mismatched amount of crypto.
• Kraken fixed the bug allowing users to inflate their balances before completing deposits.
• The bug was exploited by researchers who refused to return funds without a specified amount.
• Kraken is treating the incident as a criminal case and coordinating with law enforcement agencies.

Summary :

Blockchain security firm CertiK has publicly identified itself as the "security researcher" that Kraken accused of stealing $3 million worth of digital assets. CertiK claims to have informed Kraken of an exploit that allowed it to remove the funds from the exchange's accounts. Kraken's chief security officer alleged that the security team behind the exploit had committed extortion by refusing to return the funds until Kraken disclosed the potential size of the exploit. CertiK has posted a timeline of events and accused Kraken of threatening its employees. Initial reactions from crypto users seem to support Kraken, but it is unclear if legal action will be pursued.

Sources :

- CoinTelegraph
- TheBlock
- Decrypt
- Coindesk
- TheBlock
- CoinTelegraph