What to know:
- Kraken refused to pay extortionists and confirmed no funds were at risk despite insider data exposure
- Around 2,000 accounts were accessed, representing only 0.02% of users, with affected clients already notified
Kraken has shared a few hours ago that it is being targeted by a criminal group attempting to extort the company with threats of releasing sensitive internal data.
The update was shared by Nick Percoco, the Chief Security Officer for the exchange platform, and according to him the attackers claimed to have videos showing parts of Kraken’s internal systems. However, he stressed that the company’s core systems were never breached and so far no customer funds are at risk.
He also shared that the issue didn’t come from an external hack but instead, an insider-related incident involving members of its support team. The first incident happened in February 2025 after the company received a tip about a video circulating on a criminal-based platform.
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Kraken quickly investigated and identified the individual responsible, who was part of its support staff. Their access was immediately revoked, and the company carried out a full internal review. Additional security measures were introduced, and a small number of affected users were notified.
Source: Nick Percoco
A similar situation happened again more recently. Another tip led to the discovery of a second individual involved in similar activity. Kraken responded in the same way by terminating access, investigating the incident, and notifying impacted users.
Across both incidents, the company said around 2,000 accounts were potentially viewed, representing just 0.02% of its total user base. Kraken emphasized that the exposure was limited and controlled.
Insider Threats and Kraken’s Growing Security Concerns
The exchange platform has noted that these incidents are part of a broader and growing trend where criminal groups attempt to use insiders within companies to carry out exploits. The firm said it has been working closely with law enforcement agencies and partners to track and stop such activities, not just in crypto but also in other sectors.
Kraken said it believes it has gathered enough intelligence from both incidents to help identify those responsible. It is now working with law enforcement across different regions to pursue arrests and hold the criminals accountable. The company added that due to the ongoing investigation, it cannot release any more details for now.
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