According to Techub News, Kraken Chief Security Officer Nick Percoco published a post revealing that the Kraken team received a bug bounty alert on June 9, saying that an "extremely serious" vulnerability was discovered. The vulnerability allows attackers to increase account balances without completing deposits. The Kraken team fixed the vulnerability within 1 hour, but found that three accounts had exploited the vulnerability, one of which had a KYC information claiming to be a "security researcher." The "researcher" used the vulnerability to deposit $4 in cryptocurrency into his account and submitted a bug bounty report. The "researcher" then disclosed the vulnerability to two other people who worked with them, who withdrew nearly $3 million from the Kranken treasury. Kraken demanded the return of the funds but failed, calling its actions extortion and treating the matter as a criminal case, and is coordinating with law enforcement agencies.