Kronos.io Pre-Launch Bitcoin Heist - Revision history

Azoundria at 02:48, 12 October 2024

2024-10-12T02:48:35Z

← Older revision		Revision as of 20:48, 11 October 2024
Line 95:		Line 95:
	\|-		\|-
	\|August 4th, 2012 11:33:47 PM MDT		\|August 4th, 2012 11:33:47 PM MDT
	\|~~Alberta~~ Not Associated		\|Alberto Not Associated
	\|It is noted that "Bitdaytrade is Alberto's project, he used to do development work for kronos' group but he's no longer associated with them"<ref>[https://bitcointalk.org/index.php?topic=84241.msg1079109#msg1079109 Meni Rosenfeld - "Bitdaytrade is Alberto's project, he used to do development work for kronos' group but he's no longer associated with them." - BitcoinTalk] (Accessed Sep 17, 2024)</ref>.		\|It is noted that "Bitdaytrade is Alberto's project, he used to do development work for kronos' group but he's no longer associated with them"<ref>[https://bitcointalk.org/index.php?topic=84241.msg1079109#msg1079109 Meni Rosenfeld - "Bitdaytrade is Alberto's project, he used to do development work for kronos' group but he's no longer associated with them." - BitcoinTalk] (Accessed Sep 17, 2024)</ref>.
	\|-		\|-

Azoundria: COMPLETE 30 minutes. Renamed case to Kronos.io Pre-Launch Bitcoin Heist. Clarified timeline entries about the Kronos website not loading for over a month. Added information about the sock puppet theft accusations and Alberto's response which is widely posted on BitcoinTalk. Filled in the initial prevention section for individuals, platforms, and regulators. Removed multiple placeholder stubs. Included basics in the Technical Analysis section.

2024-09-19T00:37:29Z

COMPLETE 30 minutes. Renamed case to Kronos.io Pre-Launch Bitcoin Heist. Clarified timeline entries about the Kronos website not loading for over a month. Added information about the sock puppet theft accusations and Alberto's response which is widely posted on BitcoinTalk. Filled in the initial prevention section for individuals, platforms, and regulators. Removed multiple placeholder stubs. Included basics in the Technical Analysis section.

← Older revision		Revision as of 18:37, 18 September 2024
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	\|-		\|-
	\|August 8th, 2012 2:24:30 PM MDT		\|August 8th, 2012 2:24:30 PM MDT
	\|~~Website~~ Not Loading For Over A Month		\|Kronos Not Loading For Over A Month
	\|The kronos.io website has reportedly not been loading for over a month at this point. Other users corroborate that they have been similarly unable to access the website<ref>[https://bitcointalk.org/index.php?topic=84241.msg1087001#msg1087001 AsymmetricInformation - "For the past month or so, kronos.io website has not loaded for me at all (just times out)." - BitcoinTalk] (Accessed Sep 17, 2024)</ref>.		\|The kronos.io website has reportedly not been loading for over a month at this point. Other users corroborate that they have been similarly unable to access the website<ref>[https://bitcointalk.org/index.php?topic=84241.msg1087001#msg1087001 AsymmetricInformation - "For the past month or so, kronos.io website has not loaded for me at all (just times out)." - BitcoinTalk] (Accessed Sep 17, 2024)</ref>.
	\|-		\|-
	\|August 16th, 2012 6:18:45 PM MDT		\|August 16th, 2012 5:33:09 PM MDT
	\|Alberto Response ~~Post~~		\|Sock Puppet Theft Accusations
	\|Alberto posts his personal details and story accusing Jonathan Ryan Owens of using a small hack to justify the theft of the remaining bitcoins<ref>[https://bitcointalk.org/index.php?topic=101109.msg1105479#msg1105479 bitdaytrade - "My name is Alberto Armandi, i was born in Italy, 19/09/1983. I'm an internet entrepreneur who got caught in the Bitcoin phenomena about one and a half year ago." - BitcoinTalk] (Accessed Sep 3rd, 2024)</ref>.		\|A BitcoinTalk user reports that there are a bunch of "sockpuppets" on Reddit which are accusing Alberto (referred to as "BDT", the name of his platform BitDayTrade) of being a thief responsible for stealing bitcoin<ref name=":7">[https://bitcointalk.org/index.php?topic=88803.msg1105381#msg1105381 "There are a bunch of sockpuppets on reddit accusing BDT of being the thief responsible for the Kronos hack. One previously promoted Yoon Yeonghwa's launch of posadoll. Could MNW (a known sockpuppeter) be trying to sling mud on BDT?" - BitcoinTalk] (Accessed Sep 18, 2024)</ref>. MNW refers to founder Matthew N. Wright, and this user suggests a conspiracy the he is responsible and attempting to shift the blame to Alberto.
			\|-
			\|August 16th, 2012 6:17:46 PM MDT
			\|Alberto Response Widely Posted
			\|Alberto posts his personal details and story accusing Jonathan Ryan Owens of using a small hack to justify the theft of the remaining bitcoins<ref name=":7" />. He continues to post this same post throughout BitcoinTalk in various places related to the matter<ref>[https://bitcointalk.org/index.php?topic=101109.msg1105479#msg1105479 bitdaytrade - "My name is Alberto Armandi, i was born in Italy, 19/09/1983. I'm an internet entrepreneur who got caught in the Bitcoin phenomena about one and a half year ago." - BitcoinTalk] (Accessed Sep 3rd, 2024)</ref>.
			\|-
			\|August 27th, 2012 7:15:47 AM MDT
			\|BitDayTrade Funds Withdrawal Request
			\|Multiple users request their funds back from BitDayTrade, which is Alberto's other platform<ref>[https://bitcointalk.org/index.php?topic=88803.msg1136839#msg1136839 tbcoin - "I still waiting that reimburse me my deposit made to test this nonsense platform" - BitcoinTalk] (Accessed Sep 18, 2024)</ref>. There is no clear word to confirm that these funds were returned.
	\|-		\|-
	\|August 28th, 2012 3:34:50 AM MDT		\|August 28th, 2012 3:34:50 AM MDT
Line 124:		Line 132:

	== Technical Details ==		== Technical Details ==
			Alberto Armandi developed the platform, and was accused of deliberately allowing a vulnerability, which he could exploit to take the funds. However, others were accused of taking funds and exaggerating the amount which was originally taken.

	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost has been estimated at $43,000 USD.		The total amount lost has been estimated at $43,000 USD.

	~~How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?~~

	== Immediate Reactions ==		== Immediate Reactions ==
Line 134:		Line 141:

	== Ultimate Outcome ==		== Ultimate Outcome ==
	~~What was~~ the ~~end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?~~		There still appear to be many aspects of the situation which are unknown.

	== Total Amount Recovered ==		== Total Amount Recovered ==
	There do not appear to have been any funds recovered in this case.		There do not appear to have been any funds recovered in this case.

	~~What funds were recovered? What funds were reimbursed for those affected users?~~

	== Ongoing Developments ==		== Ongoing Developments ==
	~~What parts of this case are~~ still ~~remaining~~ to be ~~concluded?~~		There still appear to be many aspects of the situation which are unknown.
	~~== General Prevention Policies ==~~
	The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of ~~funds, such an attack would be entirely limited to the balance in the hot wallets in~~ the ~~worst case. Stronger education for exchange operators can also help ensure that they~~ are ~~aware of the risks~~.
	== Individual Prevention Policies ==		== Individual Prevention Policies ==
	{{Prevention:Individuals:~~Placeholder~~}}		{{Prevention:Individuals:No Individual Funds Lost}}

			{{Prevention:Individuals:Avoid Third Party Custodians}}

			{{Prevention:Individuals:Store Funds Offline}}

	{{Prevention:Individuals:End}}		{{Prevention:Individuals:End}}

	== Platform Prevention Policies ==		== Platform Prevention Policies ==
	{{Prevention:Platforms:~~Placeholder~~}}		The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of funds, such an attack would be entirely limited to the balance in the hot wallets in the worst case. Stronger education for exchange operators can also help ensure that they are aware of the risks.

			{{Prevention:Platforms:Implement Multi-Signature}}

			{{Prevention:Platforms:Regular Audit Procedures}}

			{{Prevention:Platforms:Establish Industry Insurance Fund}}

	{{Prevention:Platforms:End}}		{{Prevention:Platforms:End}}

	== Regulatory Prevention Policies ==		== Regulatory Prevention Policies ==
	{{Prevention:Regulators:~~Placeholder~~}}		While this situation took place prior to the launch of the platform, it happened after the platform had already launched for a beta release, where users were playing around to test things out. Therefore, it is likely that some additional risk assessment prior to that launch could have prevented the ultimate hack/theft from occurring. The platform's setup could have been assessed to determine that the funds were not being stored securely.

			{{Prevention:Regulators:Platform Security Assessments}}

			{{Prevention:Regulators:Establish Industry Insurance Fund}}

	{{Prevention:Regulators:End}}		{{Prevention:Regulators:End}}

Azoundria: Azoundria moved page Kronos Hack to Kronos.io Pre-Launch Bitcoin Heist: More descriptive title.

2024-09-18T22:16:12Z

Azoundria moved page Kronos Hack to Kronos.io Pre-Launch Bitcoin Heist: More descriptive title.

← Older revision	Revision as of 16:16, 18 September 2024
(No difference)

Azoundria: COMPLETE 30 minutes. Integrated information from Internet Archive. Extensive search of Google for more sources. Integrated information from Reddit interview with Jonathan Ryan Owens. Integration of information from the interview about Kronos and improved the source. More information integrated from Vitalik Buterin article in the Bitcoin Magazine. Integrated information from a post by Ichthyo at the time of the proposed exchange platform launch. Integrated information from a large number of other

2024-09-17T22:07:04Z

COMPLETE 30 minutes. Integrated information from Internet Archive. Extensive search of Google for more sources. Integrated information from Reddit interview with Jonathan Ryan Owens. Integration of information from the interview about Kronos and improved the source. More information integrated from Vitalik Buterin article in the Bitcoin Magazine. Integrated information from a post by Ichthyo at the time of the proposed exchange platform launch. Integrated information from a large number of other

Show changes

Azoundria at 21:34, 13 September 2024

2024-09-13T21:34:19Z

← Older revision		Revision as of 15:34, 13 September 2024
Line 1:		Line 1:
	{{~~Imported~~ Case Study ~~2\|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php~~}}		{{Case Study Under Construction}}{{Unattributed Sources}}
	{{Unattributed Sources}}

	It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.		Kronos was an Italian cryptocurrency exchange. It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team had incredibly weak or no insight into security.

	~~This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.~~<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" />		<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" /><ref>https://web.archive.org/web/20120603231125/http://atlas.bitkoin.su/post/24166211138/an-interview-with-jonathan-ryan-owens-of-kronos-io (Accessed Sep 3, 2024)</ref>

	== About Kronos ==		== About Kronos ==
	"Kronos.io, a Bitcoinica-esque startup~~, was hacked in an event shrouded in mystery even today. Led by Jonathon Ryan Owens, who was simultaneously running other new startups on GLBSE (an upstart Bitcoin “stock exchange”),~~ Kronos.io hired several well-known Bitcoin personalities to do work with HTML and coding. One of these was Alberto Armandi, who was related to Bitscalper, a scam earlier that year.[36] Alberto Armandi reportedly hacked into the website he himself helped code. The vulnerability was in the withdrawal script that Alberto coded, reportedly intentionally as a backdoor.[36] Although incredible, Armandi has also released a story denying he hacked the website. Instead, he blamed the theft on Jonathon Ryan Owens intentionally pocketing the majority of the funds with only 1000 BTC being stolen by an unknown hacker.[37]"		"Kronos.io [was] a Bitcoinica-esque startup" "Kronos.io hired several well-known Bitcoin personalities to do work with HTML and coding."

	~~This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.~~

	~~The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.~~

	~~Include:~~

	* Known history of when and how the service was started.
	* What problems does the company or service claim to solve?
	* What marketing materials were used by the firm or business?
	* Audits performed, and excerpts that may have been included.
	* Business registration documents shown (fake or legitimate).
	* How were people recruited to participate?
	* Public warnings and announcements prior to the event.

	~~Don't Include:~~
	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.
	~~There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.~~

	== The Reality ==		== The Reality ==
	~~This sections is included if a case involved deception or information that was unknown at the time. Examples include:~~		"One of the[ hired individuals] was Alberto Armandi, who was related to Bitscalper, a scam earlier that year."

	* When the service was actually started (if different than the "~~official story").~~
	* Who actually ran a service and their own personal history.
	* How the ~~service~~ was ~~structured behind the scenes. (For example~~, ~~there~~ was no "~~trading bot".)~~
	* Details of what audits reported and how vulnerabilities were missed during auditing.

	== What Happened ==		== What Happened ==
	~~The specific events of the loss and how it came about~~. ~~What actually happened to cause the loss and some of the events leading up to it~~.		"Kronos.io was hacked in an event shrouded in mystery even today. Led by Jonathon Ryan Owens, who was simultaneously running other new startups on GLBSE (an upstart Bitcoin “stock exchange”)"
	{\| class="wikitable"		{\| class="wikitable"
	\|+Key Event Timeline - Kronos Hack		\|+Key Event Timeline - Kronos Hack
Line 44:		Line 19:
	!Description		!Description
	\|-		\|-
	\|~~August 1st,~~ 2012 ~~12:00:12 AM MDT~~		\|May 2012
	\|~~Main Event~~		\|Alberto and Jonathon Meet
	\|~~Expand this into~~ a ~~brief description~~ of ~~what happened~~ and ~~the impact. If multiple lines are necessary~~, ~~add them here~~.		\|"Now, fast forward to around April/May 2012 : I happened to get in touch with Jonathan Ryan Owens, who since the start of our relationship pictured himself as a sort of "Mr. Big" in the Bitcoin world and shown to be able to use language fluenty, and to be able to convince anybody that he's actually skilled and a serious business man."
	\|-		\|-
	\|		\|August 16th, 2012 6:18:45 PM MDT
	\|		\|Alberto Response Post
	\|		\|Alberto posts his personal details and story accusing Jonathan Ryan Owens of using a small hack to justify the theft of the remaining bitcoins<ref>[https://bitcointalk.org/index.php?topic=101109.msg1105479#msg1105479 bitdaytrade - "My name is Alberto Armandi, i was born in Italy, 19/09/1983. I'm an internet entrepreneur who got caught in the Bitcoin phenomena about one and a half year ago." - BitcoinTalk] (Accessed Sep 3rd, 2024)</ref>.
			\|-
			\|August 28th, 2012 3:34:50 AM MDT
			\|hazek Mention Of Events
			\|In a forum response, BitcoinTalk user hazek mentions a summary of what happened - "AFAIK they went into open beta with some serious security holes that may or may not have been put there intentionally by one of the owners(code writers) which led to a 4kBTC hack right off the bat which was too much damage for them to recover from."<ref name="bitcointalk-82" />.
	\|}		\|}

			== Technical Details ==

	== Total Amount Lost ==		== Total Amount Lost ==
Line 59:		Line 40:

	== Immediate Reactions ==		== Immediate Reactions ==
	~~How did~~ the ~~various parties involved (firm~~, ~~platform~~, ~~management~~, ~~and/or affected individual(s)) deal~~ with ~~the events? Were services shut down? Were announcements made? Were groups formed?~~		"Alberto Armandi reportedly hacked into the website he himself helped code. The vulnerability was in the withdrawal script that Alberto coded, reportedly intentionally as a backdoor. Although incredible, Armandi has also released a story denying he hacked the website. Instead, he blamed the theft on Jonathon Ryan Owens intentionally pocketing the majority of the funds with only 1000 BTC being stolen by an unknown hacker."

	== Ultimate Outcome ==		== Ultimate Outcome ==
Line 89:		Line 70:

	== References ==		== References ==
	<references><ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 28, 2020)</ref>		<references>
			<ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old] - BitcoinTalk</nowiki>] (Accessed Jan 28, 2020)</ref>
	<ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 ~~Kronos~~.~~io questions and properties~~] (Feb 15, 2020)</ref>		<ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 hazek - '''"'''AFAIK they went into open beta with some serious security holes that may or may not have been put there intentionally by one of the owners(code writers) which led to a 4kBTC hack right off the bat which was too much damage for them to recover from." - BitcoinTalk] (Accessed Feb 15, 2020)</ref>
			<ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread - BitcoinTalk] (Accessed Feb 15, 2020)</ref>
	<ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 15, 2020)</ref>		<ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses - BitcoinTalk] (Accessed Feb 15, 2020)</ref>
			</references>
	<ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 15, 2020)</ref></references>

Azoundria at 23:51, 12 April 2023

2023-04-12T23:51:49Z

← Older revision		Revision as of 17:51, 12 April 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.		It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.

	This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.		This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" />
	<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" />

	== About Kronos ==		== About Kronos ==
Line 45:		Line 44:
	!Description		!Description
	\|-		\|-
	\|August 1st, 2012 12:00:12 AM		\|August 1st, 2012 12:00:12 AM MDT
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
Line 72:		Line 71:
	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of funds, such an attack would be entirely limited to the balance in the hot wallets in the worst case. Stronger education for exchange operators can also help ensure that they are aware of the risks.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

	== Prevention Policies ==		== Platform Prevention Policies ==
	The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of funds, such an attack would be entirely limited to the balance in the hot wallets in the worst case. Stronger education for exchange operators can also help ensure that they are aware of the risks.		{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

			{{Prevention:Regulators:End}}

	== References ==		== References ==
	<references><ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27, 2020)</ref>		<references><ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 28, 2020)</ref>

	<ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14, 2020)</ref>		<ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 15, 2020)</ref>

	<ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14, 2020)</ref>		<ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 15, 2020)</ref>

	<ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 15, 2020)</ref></references>		<ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 15, 2020)</ref></references>

Azoundria at 18:19, 15 February 2023

2023-02-15T18:19:58Z

← Older revision		Revision as of 12:19, 15 February 2023
Line 1:		Line 1:
	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}}
			{{Unattributed Citations}}

	It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.		It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.

	This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.		This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.
			<ref name="bitcointalklistold-20" /><ref name="bitcointalk-82" /><ref name="bitcointalk-85" /><ref name="bitcointalklist-87" />

	== About Kronos ==		== About Kronos ==
Line 23:		Line 25:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
Line 45:		Line 46:
	\|-		\|-
	\|August 1st, 2012 12:00:12 AM		\|August 1st, 2012 12:00:12 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
Line 58:		Line 55:

	== Total Amount Lost ==		== Total Amount Lost ==
	$43 000 USD		The total amount lost has been estimated at $43,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Line 68:		Line 66:

	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~$0 USD~~		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?

Line 78:		Line 77:

	== References ==		== References ==
	[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27)		<references><ref name="bitcointalklistold-20">[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27, 2020)</ref>

	[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14)		<ref name="bitcointalk-82">[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14, 2020)</ref>

	[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14)		<ref name="bitcointalk-85">[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14, 2020)</ref>

	[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 14)		<ref name="bitcointalklist-87">[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 15, 2020)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}} It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security. This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. == About Kronos == "Kronos.io, a Bitcoinica-esque startup, was hacked in a..."

2023-01-21T06:18:26Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}} It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security. This exchange or platform is based in Italy, or the incident targeted people primarily in Italy. == About Kronos == "Kronos.io, a Bitcoinica-esque startup, was hacked in a..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/kronoshack.php}}

It looks like one of the developers deliberately made the withdrawal wallets hackable so that they could withdraw the entirety of the funds. The rest of the team ha incredibly weak or no insight into security.

This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.

== About Kronos ==
"Kronos.io, a Bitcoinica-esque startup, was hacked in an event shrouded in mystery even today. Led by Jonathon Ryan Owens, who was simultaneously running other new startups on GLBSE (an upstart Bitcoin “stock exchange”), Kronos.io hired several well-known Bitcoin personalities to do work with HTML and coding. One of these was Alberto Armandi, who was related to Bitscalper, a scam earlier that year.[36] Alberto Armandi reportedly hacked into the website he himself helped code. The vulnerability was in the withdrawal script that Alberto coded, reportedly intentionally as a backdoor.[36] Although incredible, Armandi has also released a story denying he hacked the website. Instead, he blamed the theft on Jonathon Ryan Owens intentionally pocketing the majority of the funds with only 1000 BTC being stolen by an unknown hacker.[37]"

This exchange or platform is based in Italy, or the incident targeted people primarily in Italy.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Kronos Hack
!Date
!Event
!Description
|-
|August 1st, 2012 12:00:12 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
$43 000 USD
How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
$0 USD
What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
The storage of all cryptocurrency in a proper offline multi-signature wallet prevents theft by any individual party, since such a party would need the approval or breach of multiple other members of the team to spend the funds. Given operators properly educated in the protection of funds, such an attack would be entirely limited to the balance in the hot wallets in the worst case. Stronger education for exchange operators can also help ensure that they are aware of the risks.

== References ==
[https://bitcointalk.org/index.php?topic=83794.msg923918#post_toc_27 <nowiki>List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses [Old]</nowiki>] (Jan 27)

[https://bitcointalk.org/index.php?topic=84148.0 Kronos.io questions and properties] (Feb 14)

[https://bitcointalk.org/index.php?topic=101109.0 Jonathan Ryan Owens locked Rebate, Zip.A, Alberto & BDT thread] (Feb 14)

[https://bitcointalk.org/index.php?topic=576337 List of Major Bitcoin Heists, Thefts, Hacks, Scams, and Losses] (Feb 14)