Kraken Reports Dark Web Ransom Threat, Denies Breach

Crypto exchange Kraken is facing an extortion attempt after videos surfaced on dark web forums, though the company states no systems were breached and client funds remain secure. A criminal group is reportedly threatening to release internal footage to coerce a ransom payment.

Kraken identified two incidents where insider access to limited support data exposed roughly 2,000 accounts, representing 0.02% of its client base. Both cases involved individuals from its support team, whose access was revoked upon discovery.

The first incident occurred in February 2025, leading to tightened controls and user notifications. A similar recent event prompted an identical swift response. "Our systems were never breached; funds were never at risk; we will not pay these criminals," stated Chief Security Officer Nick Percoco.

Kraken is cooperating with law enforcement, suggesting the extortion is part of a broader criminal effort to recruit insiders across crypto, gaming, and telecom sectors. The firm emphasized normal operations and new security measures, highlighting insider threats as a growing industry risk.