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Kraken rejects extortion attempt tied to client data exposure
TL;DR
Kraken's chief security officer announced the company will not negotiate with a criminal group attempting to extort them over client data exposure. He emphasized that Kraken's systems were never breached and user funds remain secure.
Key points
- Kraken faced an extortion attempt regarding client data.
- The company's systems were never breached.
- User funds remain secure and unaffected.
- Kraken will not negotiate with the criminals.
KrakenNick Percoco
Kraken’s chief security officer said that the company would not be negotiating with a criminal group threatening to release certain information related to client data.
In a Monday X post, Nick Percoco reported an attempt to extort an unspecified amount from the cryptocurrency exchange by an unnamed group “threatening to release videos of our internal systems with client data shown.”
He said Kraken’s systems “were never breached” and user funds were not at risk, describing the incidents instead as cases of unauthorized access rather than a system-wide compromise.
“We will not pay these criminals,” said Percoco. “We will not ever negotiate with bad actors.”
Source: Nick Percoco
According to Percoco, there had been two incidents involving “inappropriate access” to client data in February 2025 and “more recently,” involving about 2,000 user accounts. He added that Kraken was working with federal law enforcement to investigate the criminal group, potentially leading to arrests.
Related: US Treasury expands cybersecurity threat intel to crypto industry
The incident highlights how crypto exchange security protecting personal data and user funds remains paramount as the industry continues to expand. There have been numerous instances where individuals tied to crypto companies or with digital asset holdings have been extorted or faced attempts at extortion.
Coinbase faced similar extortion attempt
In May 2025, Coinbase reported that cybercriminals threatened to leak user data in an attempt to extort $20 million out of the crypto exchange.
Q&A
What did Kraken's chief security officer say about the extortion attempt?
Kraken's chief security officer stated that the company will not negotiate with the criminals and emphasized that their systems were never breached.
Was any client data actually compromised in the Kraken incident?
No, Kraken's systems were not breached, and the incident was described as unauthorized access rather than a system-wide compromise.
What actions is Kraken taking in response to the extortion threat?
Kraken is refusing to pay the extortionists and has committed to not negotiating with bad actors.
