The Crypto exchange Kraken reported that a criminal group is trying to extort them by claiming to possess videos which show access to their internal systems that contain client information. The company confirmed it will not pay or negotiate.
Kraken confirmed that the problem did not involve hackers who breached the system but rather unauthorized people who gained access through its customer support department. The two incidents discovered by investigators resulted in restricted access to user data. The exchange established that all customer funds remained completely secure throughout the entire process.
Nick Percoco, Chief Security and Information Officer at Kraken and its parent company Payward Inc., said the company acted quickly in both cases.
“Our systems were never breached; funds were never at risk; we will not pay these criminals.”
Nick Percoco
Kraken received a tip about a video shared on a criminal forum which occurred on February 2025. An internal investigation led to the identification of the individual responsible. The organization disabled their access, implemented extra security controls, and notified a small group of users who had been affected.
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A similar case occurred more recently. Kraken terminated the employee who had been identified and informed clients who had been affected by the situation. The total number of accounts that were seen by people amounts to approximately 2,000. The percentage of users on the platform includes approximately 0.02 percent of the total client base, which exceeds two million users.
Insider risks remain a growing concern in crypto
The demand for ransom began after the organization successfully handled the recent security breach. The group threatened to release materials from both cases to media outlets and social platforms. The company is working with law enforcement and industry partners to investigate what it described as a broader effort to recruit insiders across crypto and other sectors.
Security challenges remain common in the crypto industry. Digital assets can be transferred instantly across borders and are difficult to recover once lost, making them attractive targets. Human error and social engineering attacks continue to create security vulnerabilities despite core system protection.
The recent attacks demonstrate that hackers have advanced their skills to combine their technical expertise with their ability to manipulate others. The trend makes protection against security threats more difficult because it takes place in dynamic environments.
The 2011-founded Kraken company operates global trading and custody services for Bitcoin and Ether and other digital assets to serve retail and institutional clients.
