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Crypto Exchange Kraken Targeted In Extortion Attempt
Cryptocurrency exchange Kraken says it has been targeted in an extortion attempt by a criminal group. The privately held exchange says the criminals are threatening to release videos that provide access to internal systems that contain sensitive client data unless a ransom is paid.
Kraken says it shutdown two instances of inappropriate access tied to individuals within its support team, each involving limited client data.
On social media, Kraken wrote: “Our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors.”
This is not the first time that Kraken has been extorted for money or had its security breached. In February 2025, Kraken received a tip about a video circulating on a criminal forum. An internal investigation identified the individual involved and led to additional security controls.
Security incidents remain a high-profile issue in the crypto sector because the industry combines high-value, easily transferable assets with technical and human vulnerabilities.
Digital assets can be moved instantly across borders and are often irrecoverable, making them attractive targets for criminals. Recent crypto exploits have shown increasing sophistication among hackers, with attacks combining smart contract vulnerabilities, social engineering, and rapid fund movement.
Kraken has millions of customers, and the security events have affected only 0.02% of the client base, according to the company. The exchange added that it is working with industry partners and law enforcement to investigate the latest extortion attempt.
Kraken is a U.S.-based cryptocurrency exchange that provides users with spot and derivatives trading, as well as custody and staking services for digital assets. Founded in 2011, Kraken serves retail and institutional clients worldwide, providing access to cryptocurrencies such as Bitcoin (CRYPTO: $BTC) and Ethereum (CRYPTO: $ETH).
Despite the current extortion attempt, Kraken is known for its security protocols and regulatory compliance across multiple jurisdictions. As a private company, Kraken’s stock does not trade on a public exchange.
This article has been published in cryptoprowl.com via Yahoo News.
Crypto Exchange Kraken Targeted In Extortion Attempt
Cryptocurrency exchange Kraken says it has been targeted in an extortion attempt by a criminal group. ...
finance.yahoo.com
