'We Will Not Pay These Criminals': Crypto Exchange Kraken Is Being Extorted Over Stolen Data

In brief

• Kraken is being extorted for an undisclosed sum by criminals that have access to customer data.
• The firm's security executive said it will not negotiate or pay the criminals.
• The exchange is working with law enforcement, and believes it has sufficient evidence to identify and arrest those responsible.

A criminal group is threatening to release stolen customer data from crypto exchange Kraken, the firm reported Monday, publicly disclosing the conflict via social media.

“We will not pay these criminals; we will not ever negotiate with bad actors,” Kraken Chief Security Officer Nick Percoco posted on X.

“We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands,” Percoco added. “We are actively working with federal law enforcement across multiple jurisdictions to pursue all individuals involved and bring them to justice.”

According to Percoco, the firm recently received a tip that a video was made showcasing sensitive customer information from its internal systems. That tip follows a February 2025 security incident in which a similar video, containing customer information, was shared on a “criminal forum.” 

Kraken Security Update

We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands. It’s important to start with the most important points: our systems were never…

— Nick Percoco (@c7five) April 13, 2026

In each instance, the individual involved from within the company was identified. No customer funds were at risk, Percoco said, and internal systems were not breached. 

“Since then, we have been collaborating with industry partners and law enforcement to investigate and disrupt insider recruitment efforts targeting not only crypto companies, but also gaming and telecommunications organizations,” said Percoco. 

The firm’s security executive approximated that around 2,000 individuals potentially had their information viewed, and anyone at risk has already been contacted. The criminals are allegedly threatening to share that information with local media and across social media networks if Kraken does not comply with their demands. 

Additional details about the incident are not being shared by the firm at the time, due to the ongoing investigation. A representative for the firm did not immediately respond to requests for comment.