In a shocking development today, WOO X, a leading crypto trading platform, made a new announcement. In particular, it suddenly announced a temporary halt to operations, creating fluctuations in the altcoin environment. The exchange attributed the unexpected halt to “unavoidable circumstances” resulting from a security breach affecting one of its key market makers, Kronos Research. Here are the details…
Breach at Kronos Research impacts WOO
Kronos Research, which acknowledged a breach in its API, announced a significant withdrawal of assets that made normal trading impossible. Despite this setback, the market maker assured stakeholders that the stolen amount “does not constitute a major portion of the company’s assets” and pledged to resume operations immediately. However, estimates from the famous “onchain detective” ZachXBT indicate that the losses suffered by Kronos Research could reach up to 12,800 ETH, worth approximately $25 million.
Looks possibly like $20.3M+ (12800+ ETH)
0x2b0502FDab4e221dcD492c058255D2073d50A3ae pic.twitter.com/sLnFA0VXhk
— ZachXBT (@zachxbt) November 18, 2023
Feeling the immediate impact, WOO X released a statement shortly after the news broke. The exchange said Kronos Research serves as the primary market maker and contributes up to 40% of the total spot and futures liquidity on the platform. WOO X has decided to immediately stop trading in order to protect user interests.
Operations have restarted
Following the suspension, WOO X moved quickly to secure alternative market makers to support its operations. Trading activities resumed around 8 a.m. on November 19. In a reassuring tweet, WOO
Update #1: BTC-PERP and ETH-PERP has now resumed trading, other PERP pairs will be back up soon. Please note liquidity may be limited, but should clients wish to close positions they can do so.
— WOO X (@_WOO_X) November 18, 2023
It is noteworthy that WOO WOO X’s last 24-hour trading volume for spot futures hovered around $150 million, highlighting its significant presence in the crypto trading landscape.
Altcoin price decreased
Meanwhile, the value of WOO Network’s token, WOO, dropped by 8 percent. At the time of writing, the cryptocurrency is changing hands at $0.22. However, its highest level on a daily basis was $0.27. It seems like it faced a major selloff after the news of the hack spread. While the industry closely monitors the consequences of this security breach, stakeholders remain vigilant about the resilience of cryptocurrency platforms and the measures taken to strengthen them against such incidents in the future.
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