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Kraken Says Hackers Turned to 'Extortion' After Exploiting Bug for $3M

The bug found by a "security researcher" led to nearly $3 million stolen from Kraken's treasuries.

"Instead, they demanded a call with their business development team (i.e. their sales reps) and have not agreed to return any funds until we provide a speculated $ amount that this bug could have caused if they had not disclosed it. Kraken didn't disclose who the researchers were, but blockchain code editor Certik subsequently said in a social media post that it found several vulnerabilities in the crypto exchange. Bug bounty programs – used by many firms to strengthen their security systems – invite third-party hackers, known as "white hats," to find vulnerabilities so the company can fix them before a malicious actor exploits them.

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