Kraken Discloses Extortion Attempt, Says No Client Funds At Risk

Crypto exchange Kraken today disclosed an ongoing extortion attempt, confirming no systems breach, but reveals a targeted insider campaign tied to a broader criminal operation.

What's the Scoop?

• Insider Effort: In an update posted to X by Nick Percoco, Kraken's Chief Security Officer, the crypto exchange informed the public of an ongoing criminal extortion effort. Kraken maintains that core systems were never compromised and that client assets remain secure, but detailed two instances of improper access traced to internal support staff, both of whom were terminated. An estimated 2k Kraken customer accounts (~0.02% of the exchange's users) were exposed; affected clients have already been notified.
• Ongoing Extortion: According to Kraken, a criminal group is threatening to release videos of internal systems unless Kraken complies with its demands. The crypto exchange has refused to comply with the extortioners' demands for payment, and claims it has gathered, "sufficient evidence to support the identification and arrest of those responsible." Kraken says it is actively working with federal law enforcement across multiple jurisdictions to pursue all individuals involved.
• Coinbase Parallel: In May 2025, competitive crypto exchange Coinbase disclosed its own hack resulting from misappropriated internal access, which was expected to cost the company up to $400M to remedy the breach.