Cryptocurrency exchange Kraken recently faced a security breach leading to an extortion attempt. The breach was caused by a bug discovered by a self-proclaimed security researcher, who exploited it to siphon over $3 million. Kraken's security team managed to fix the vulnerability within two hours, ensuring no user funds were at risk. The individuals behind the breach claimed their actions were part of ethical hacking, a claim Kraken rejected, labeling their demands as extortion. In response, Kraken is reinforcing its security protocols and reviewing its bug bounty program. The incident underscores the need for stricter protocols and clearer guidelines within the crypto industry.