Key Takeaways:
- CertiK identified itself as the party involved in a controversy with Kraken and announced plans to return $3 million in digital assets obtained during a security exploit.
- Kraken accused CertiK of extortion, while CertiK claimed Kraken threatened its employees and failed to provide repayment addresses.
- The crypto community largely supports Kraken, and it’s unclear if Kraken will pursue legal action against CertiK.
CertiK, a blockchain security firm, has identified itself as the party involved in a recent controversy with cryptocurrency exchange Kraken.
CertiK announced it would return the $3 million in digital assets obtained during a security exploit of Kraken’s systems.
CertiK claims to have recently identified a series of critical vulnerabilities in Kraken exchange which could potentially lead to hundreds of millions of dollars in losses. A huge amount of fabricated crypto (worth more than 1M+ USD) can be withdrawn from the account and…
— Wu Blockchain (@WuBlockchain) June 19, 2024
However, Kraken accused CertiK of extortion, claiming CertiK demanded a speculative amount as a reward for disclosing the bug.
CertiK countered that Kraken threatened its employees for an unreasonable repayment and did not provide repayment addresses.
Holy shit.
— Adam Cochran (adamscochran.eth) (@adamscochran) June 19, 2024
Certik just admitted to being the security firm that stole from Kraken and is trying to extort them for more of a payment.
Given how often Certik audits get hacked and now this shit, it’s wild they still exist.
Down right criminal. https://t.co/Ijpv3x5Pxc
CertiK shared a timeline of the events, starting with the exploit’s discovery on June 5 and ending with Kraken’s alleged threats on June 18.
While CertiK aims to return the funds transparently, the crypto community largely sided with Kraken, questioning CertiK’s actions.
CertiK says it found Kraken's bug and is transferring the funds back to the exchange https://t.co/mx933GGtwx
— The Block (@TheBlock__) June 19, 2024
It is still uncertain if Kraken will pursue legal action.
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