Crypto trading platform WOO X has resumed operations after one of its market makers experienced a breach in its security system, resulting in a significant withdrawal of crypto assets. Despite the incident, WOO X assures its users that all client assets remain secure.
“It is business as usual for WOO X, as WOO reassures users that all client assets remain secure despite the temporary trading suspension,” the platform said in a Sunday announcement.
Security Breach and Unauthorized Access
The breach in security was experienced by Kronos Research, a Taipei-based market maker. Confirming the breach in a post on X (formerly Twitter), Kronos Research mentioned that it experienced unauthorized access to some of its API keys.
“We experienced unauthorized access to some of our API keys,” said Kronos Research.
As a result of the breach, approximately $25 million worth of crypto assets was siphoned away into six unique crypto wallet addresses. The transactions involved 2,780 Ether, 2,540 ETH, 2,540 ETH, 2,636 ETH, 4.93 ETH, and 2,507.52 ETH, respectively, according to the investigation conducted by blockchain investigator ZachXBT.
Recovery and Resumption of Trading
Kronos Research paused all trading activities following the security breach. However, the company stated that the loss incurred is not a significant portion of their equity and aims to resume trading as soon as possible.
“Potential losses are not a significant portion of our equity, and we aim to resume trading as soon as possible,” mentioned Kronos Research.
WOO X has recently recouped shares and tokens acquired by the failed hedge fund Three Arrows Capital (3AC). 3AC was the largest investor in WOO X’s Series A funding round raised in November 2021. As part of the settlement, WOO X has agreed to cancel the shares of the now-defunct hedge fund, reducing their ownership and increasing the ownership of all other shareholders.
“The move clears the uncertainty related to 3AC from the WOO ecosystem,” said Jack Tan, co-founder of WOO X.
In November 2021, WOO Network closed a $30 million Series A round of funding from various investors. The funding round involved participation from investors such as Crypto.com Capital, the Avalanche Asia Star Fund (AVATAR), AscendEX, LBank, Fenbushi Capital, and BitMart.
With the funds raised, WOO X plans to establish a research and development office in Warsaw, Poland.
