Kraken said it is facing an extortion attempt after a criminal group threatened to release internal system footage, though the exchange maintains no breach occurred and client funds were never at risk.
The company disclosed two insider-related incidents involving unauthorised access to limited support data affecting around 2,000 accounts, representing roughly 0.02% of its user base.
“Our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors,”
Said Nick Percoco.
Kraken said both incidents were identified through external tips, with responsible individuals having their access revoked and affected users notified while additional security controls were implemented.
The exchange added it began receiving extortion demands after the latest incident, with attackers threatening to release materials to media and social platforms.
Kraken is now working with law enforcement and industry partners to investigate what it described as broader insider recruitment efforts targeting crypto, gaming and telecom firms.
The case highlights ongoing security risks in crypto, where high-value assets, fast settlement, and human vulnerabilities continue to attract increasingly sophisticated attacks.