Kraken Accuses CertiK of $3M Exploit and Extortion on June 19, Funds Laundered via Tornado Cash

Jun 19, 2024, 07:04 PM

Kraken, a prominent cryptocurrency exchange, disclosed a critical security vulnerability on June 9, 2024, after receiving a bug bounty alert from a security researcher. The researcher claimed to have found a bug that allowed them to artificially inflate their balance on the platform. Following this, Kraken accused the researcher, affiliated with CertiK, of extortion. CertiK, a well-known smart contract auditor, is alleged to have exploited the vulnerability, stealing $3 million from Kraken and laundering the money through Tornado Cash and ChangeNOW. The incident, which came to light on June 19, has sparked significant backlash against CertiK, with many in the crypto community questioning their integrity and calling for their blacklisting.