Summary

• Kronos Research suffered a cyber theft where hackers obtained unauthorized access to its API keys.
• Losses from the breach exceeded $25.6 million in various cryptocurrencies.
• Kronos Research confirmed the breach, stating that the losses represent a small portion of its equity. The company pledged to absorb all losses internally, shielding its partners from financial impact.
• Thw firm temporarily suspended all trading operations, affecting its affiliated exchange, Woo X. 
• Customer funds on Woo X remain secure, but certain asset combinations are temporarily blocked due to liquidity concerns.
• Kronos Research intends to resume trading operations in the coming days, contingent on favorable conditions. 

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Kronos Research, a multifaceted organization involved in crypto trading, market-making, and venture capital, has recently been exposed to a cyber attack where hackers reportedly gained unauthorized access to its API keys. The company clarified that the breach impacted only a small segment of its total equity.

According to on-chain data provider Look Onchain, Kronos Research suffered losses totaling approximately $25.65 million in various cryptocurrencies. 

Notably, ZachXBT, a blockchain research organization, traced rapid disbursements from a wallet linked to the breach. The investigation into the hack reveals six transactions involving 2,780 Ether, 2,540 ETH (repeated twice), 2,636 ETH, 4.93 ETH, and 2,507.52 ETH. These transactions originated from a Kronos Research account and were directed to multiple addresses controlled by the hacker, shedding light on the meticulous nature of the cyber attack.

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Official Confirmation and Internal Resolution

In a subsequent update, Kronos Research officially confirmed the losses at approximately $26 million in crypto assets. However, the company reassured stakeholders that the losses represent an insubstantial portion of its equity. Kronos affirmed that it will absorb all losses internally, ensuring that no partners will bear the financial brunt of the breach.

Operational Impact and Trading Suspension

In response to the breach, Kronos Research has implemented a temporary suspension of all trading operations. Upon Kronos ceasing operations, Woo X, the exchange created by Kronos, temporarily blocked certain asset combinations due to liquidity issues. Nevertheless, Woo X emphasized the security of customer funds and announced the resumption of spot and perpetual trading.

Further, Kronos Research, in an official statement, expressed its intention to resume trading operations in the coming days, contingent on favorable circumstances. 

This recent hack amidst a backdrop of heightened cybersecurity concerns, with blockchain security firm Certik revealing that crypto attacks have siphoned off approximately $173 million in November alone. Notably, Poloniex's $113 million hack stands out as the most significant incident preceding the Kronos breach.