Kraken Exchange Accuses Hackers of Extortion After $3 Million Theft

Kraken, a cryptocurrency exchange, has accused "security researchers" of extortion after they exploited a bug on the platform and stole nearly $3 million from Kraken's treasuries. The researchers initially reported a vulnerability that allowed users to inflate their balances, which Kraken swiftly fixed. However, they later withdrew funds from their accounts without disclosing their actions or following the bug bounty program's rules. Kraken claims the researchers demanded a payment based on the potential damage the bug could have caused if they hadn't reported it. The exchange is working with law enforcement to retrieve the stolen funds. This incident highlights the growing issue of unethical behavior within the bug bounty community and raises concerns about the potential for exploitation and extortion.