Kraken is facing an ongoing extortion attempt by an unidentified criminal group that has obtained videos of the exchange's internal support systems, according to Chief Security Officer Nick Percoco.
In a message posted on X on Monday, Percoco stated that the attackers are threatening to leak footage showing Kraken support staff accessing internal client systems and limited customer data unless a ransom is paid.
The exchange has taken a hardline stance against the threat. "We will not ever negotiate with bad actors," Percoco said, adding that the company is working with federal law enforcement and industry security experts to address the situation.
Kraken confirmed that no core systems were breached and customer funds remain secure. The company has already successfully shut down one separate extortion attempt.
Internal threats and data exposure
The breach involved two separate incidents. The first occurred in February when a member of the Kraken support team reportedly filmed internal systems, and a second, more recent incident followed a similar pattern of unauthorized access.
Kraken reported that approximately 2,000 customer accounts were potentially viewed during these breaches. The exchange is currently in the process of contacting all impacted users.
Percoco noted that Kraken is actively investigating broader efforts by criminals to recruit insiders within the crypto industry. He emphasized the company's commitment to "combating the growing global threat of insider recruitment."
This incident mirrors a security breach at Coinbase last year, where overseas contractors sold customer information affecting roughly 69,000 accounts. The crypto industry continues to face sophisticated infiltration tactics, including known efforts by the North Korean-backed Lazarus Group to plant operatives within legitimate blockchain projects.
