Kraken's "extortion" saga appears to be over, with the exchange getting its money back
to return its funds following what it described as an"extortion" attempt. It has lost only a small amount of money to fees. , a security researcher from an undisclosed firm notified the exchange about a critical bug that made it possible to effectively print money out of this air by receiving funds without completing deposits.
Instead of submitting a bug report, the researcher initially informed two other individuals about the vulnerability, which resulted in Kraken losing $3 million from its treasury. The researchers refused to return the funds and started demanding a call with the firm's sales representatives. Kraken accused the firm of extortion and contacted law enforcement.
In another twist, well-known blockchain security firm CertiK revealed that it was responsible for discovering the bug. It claimed that Kraken had started demanding a mismatched amount of funds while threatening its employees. CertikK added that the multi-million withdrawals were actually part of its testing."The real question should be why Kraken’s in-depth defense system failed to detect so many test transactions," the firm said.
This is not the first time that CertiK has become a source of controversy. The firm would previously attract criticism and mockery after multiple projects that passed its audits ended up being hacked. Alex Dovbnya is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets.
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