Kraken, one of the largest crypto exchanges, is currently facing an extortion attempt from an unidentified criminal group. The group gained access to internal support system videos and limited customer data, threatening to release the material unless Kraken pays an undisclosed sum. Chief Security Officer Nick Percoco confirmed the situation in an X post on Monday, stating that Kraken will not negotiate or pay the demand.
The extortionists claim they will leak the videos to local and social media if their demands are not met. Percoco assured that Kraken's core systems remain secure, and no customer funds are at risk. The incident stems from two separate access events: one in February 2025, when a video containing customer information was shared on a criminal forum, and a more recent event following a similar pattern. Kraken identified and removed the internal sources responsible for both breaches.
Approximately 2,000 accounts were potentially viewed across the two incidents. Kraken has already notified all affected users. Percoco stated that the exchange has gathered sufficient evidence to identify and arrest the responsible parties. The exchange is collaborating with federal law enforcement across multiple jurisdictions and industry partners to disrupt insider recruitment efforts targeting crypto firms, gaming companies, and telecommunications organizations.
Kraken confidentially filed for an initial public offering in November of last year but delayed the plans in early 2026 due to difficult market conditions. The exchange has not disclosed additional details about the current extortion attempt while the investigation is ongoing.