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Kraken Accuses Blockchain Security Outfit CertiK of Extortion


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 Register: The exchange wrote about the issue yeste...

The Register: 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." According to Percoco, the issue derived from a recent UX change that would credit client accounts before assets actually cleared to create an artificial sense of real-time cryptocurrency trades. According to Percoco, the analyst behind the find shared it with a couple of coworkers, who then exploited the vulnerability to withdraw nearly $3 million from the platform.

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