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Crypto exchange Kraken accuses blockchain security outfit CertiK of extortion

June 21, 2024

Kraken, one of the largest cryptocurrency exchanges in the world, has accused a trio of security researchers of discovering a critical bug, expoliting it to steal millions in digital cash, then using stolen funds to extort the exchange for more.

The exchange wrote about the issue yesterday, saying the exploit allowed some users “to artificially increase the value of their Kraken account balance without fully completing a deposit.” Kraken chief security officer Nicholas Percoco said on X that the researchers didn’t provide any details in their bug bounty report, but that his team discovered the bug within an hour.

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