Kraken, one of the largest cryptocurrency exchanges in the world, has accused a trio of security researchers of discovering a critical bug, expoliting it to steal millions in digital cash, then using stolen funds to extort the exchange for more.about the issue yesterday, saying the exploit allowed some users"to artificially increase the value of their Kraken account balance without fully completing a deposit.
Simply reporting the bug would have been enough for a sizable bounty, Percoco added. The researcher who disclosed the vulnerability, who Kraken didn't name"because they didn't comply with any industry expectations," didn't stop there, however. "Instead, they demanded a call with their business development team … and have not agreed to return any funds until we provide a speculated amount that this bug could have caused if they had not disclosed it," Percoco said."This is not white-hat hacking, it is extortion!""We are treating this as a criminal case and are coordinating with law enforcement agencies accordingly," Percoco added.