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Major cryptocurrency exchange Kraken has <a href="https://x.com/c7five/status/1803403565865771370">discovered</a> a critical bug that effectively allowed the printing of free money.
In spite of the bug’s severity, the exchange says that no clients' assets were actually at risk.&nbsp;
The global cryptocurrency trading platform was notified about the vulnerability by a security researcher via email.&nbsp;
Despite routinely dealing with fake bug bounty reports, the exchange says that it treated that particular alert seriously, with its team quickly digging into the issue.&nbsp;
Kraken's team ended up discovering a bug that allowed bad actors to initiate a deposit onto Kraken and receive funds in their account without completing the deposit.
A bad actor could print assets out of thin air on <a href="https://u.today/kraken-v-sec-whats-new-in-legal-saga">Kraken</a>, according to Nick Percoco, Kraken’s chief security officer. This was due to a recent UX change that would credit accounts before their assets cleared.&nbsp;
<h2 id="money-printing-spree">Money-printing spree &nbsp;</h2>
A total of three accounts managed to take advantage of the bug, according to Percoco. One of them was the security researcher who originally discovered the bug and generated $4 in crypto in order to prove it. However, instead of reporting the bug and collecting a reward from Kraken, the research disclosed the bug to the other two individuals, who printed millions of dollars worth of crypto and withdrew $3 million from Kraken's treasuries. &nbsp; &nbsp;&nbsp;
"The initial Bug Bounty report did not fully disclose this transaction information, so we contacted the security researchers to confirm some details to progress with rewarding them for successfully identifying a security flaw on our platform," Percoco added.&nbsp;
<h2 id="it-s-extortion">"It's extortion"&nbsp;</h2>
The security researchers refused to return the money they had withdrawn after being contacted by Kraken's team. Instead, they demanded a call with their sales representatives and a speculative sum of money that this bug could have caused. &nbsp;
Kraken has accused the security company of "extortion," adding that it is treating this as a criminal case. &nbsp;&nbsp;
"We’ll not disclose this research company because they don’t deserve recognition for their actions. We are treating this as a criminal case and are coordinating with law enforcement agencies accordingly," Percoco added.

Top Exchange Kraken Discovers “Extremely Critical” Bug

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