The chief security officer at Kraken says the exchange is being targeted by a criminal group attempting to extort the company.
In a new statement, Nick Percoco says Kraken’s core systems and client funds have not been compromised and that the company will not negotiate with the perpetrators.
“We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands.
It’s important to start with the most important points: our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors.”
Percoco says only a small fraction of users were potentially affected and that authorities are actively pursuing those responsible.
“Across both incidents, only a very small number of client accounts were potentially viewed – approximately 2,000 in total (0.02% of clients). Based on intelligence gathered across both incidents, along with extensive ongoing analysis, we believe there is sufficient evidence to support the identification and arrest of those responsible.”
According to Percoco, the first incident occurred in February 2025 after a tip revealed a video on a criminal forum appearing to show access to Kraken’s client support systems. The individual involved, identified as a member of the support team, had their access immediately revoked, and affected clients were notified.
A second, similar case was later uncovered and handled in the same manner. Following these actions, the criminals issued extortion demands threatening to release the materials to media and social platforms.
Kraken is now working with industry partners and federal law enforcement across multiple jurisdictions to investigate the incidents.
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