Kraken is facing extortion attempts after two employees improperly accessed client support data. The crypto exchange confirmed internal misuse allowed a criminal group to obtain footage of its systems, but stated no funds were at risk. Kraken’s security chief said the company will not pay the attackers and is cooperating with law enforcement across multiple jurisdictions to pursue arrests.
Kraken is confronting extortion attempts from a criminal group threatening to release internal videos allegedly featuring client data. The crypto exchange stated its systems were not breached and no user funds were ever at risk, confirming it will not negotiate with the attackers.
Chief Security Officer Nick Percoco confirmed the company identified two instances of inappropriate insider access to limited client support data. The first incident in February 2025 was discovered after a trusted source alerted Kraken to a video on a criminal forum, which led to the identification and removal of a support team member. In both recent cases, the company “revoked access, conducted a full investigation, and notified affected users,” with approximately 2,000 accounts potentially viewed.
Shortly after access was revoked, Kraken began receiving extortion demands threatening to distribute related materials. The company is working with federal law enforcement across multiple jurisdictions based on evidence gathered during its investigations. Due to the active investigation, no further details can be disclosed at this time.
This incident follows a separate 2025 security case at Coinbase, which involved a large-scale data breach leading to stolen user information. In that incident, the hacker laundered millions in stolen crypto, mocked investigators, and Coinbase refused a $20 million ransom demand tied to the stolen data.
