Cryptocurrency exchange Kraken reported that a criminal group attempted to extort the company by threatening to release videos of its internal systems containing client data. The exchange’s chief security officer, Nick Percoco, stated that systems were never breached and user funds are safe. Kraken will not negotiate or pay the criminals and is working with law enforcement on the incident, which involved inappropriate access to data from about 2,000 accounts.
Kraken’s chief security officer, Nick Percoco, reported an extortion attempt by a criminal group threatening to release videos of the exchange’s internal systems showing client data. “We will not pay these criminals,” said Percoco. “We will not ever negotiate with bad actors.”
Percoco clarified that Kraken’s systems were never breached and user funds were not at risk. The incident highlights the ongoing importance of security for personal data as the crypto industry expands.
He stated there were two incidents involving “inappropriate access” to client data in February 2025 and more recently. The access involved approximately 2,000 user accounts.
Kraken is now working with federal law enforcement on the investigation. This cooperation could potentially lead to arrests of the individuals involved.
In a similar case, Coinbase reported a cyber extortion attempt in May 2025 where criminals threatened to leak user data for a $20 million ransom. That breach, which compromised data from about 70,000 users, resulted from bribes to customer support contractors.
Blockchain intelligence firm Nominis reported that more than $178 million was lost across major crypto incidents in March 2026. This marked a significant increase from the $49.3 million lost in February.
Authorization abuse continued as the primary attack vector in that period. Multiple incidents involved victims unknowingly approving transactions that gave hackers direct access to their funds.
