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Kraken said a criminal group is trying to extort the exchange, but the company said core systems stayed intact and client funds were never in danger.
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Kraken said criminals threatened to release videos showing internal systems with client data unless the exchange met their demands. Chief security officer Nick Percoco said the company will not comply.
“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.”
Kraken said only a small share of users may have been affected. According to Percoco, about 2,000 client accounts, or 0.02% of the customer base, were potentially viewed across both cases.
“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.”
Kraken traced the first case to February 2025 after a tip pointed to a video on a criminal forum that appeared to show access to client support systems. The person involved, who Kraken identified as part of the support team, lost access right away, and affected clients received notice. A second similar case later surfaced and Kraken said it handled that one in the same way.
After those steps, the group behind the material allegedly sent extortion demands and threatened to publish the videos through media outlets and social platforms. Kraken said it is now working with industry partners and federal law enforcement in multiple jurisdictions.