Kraken Rejects Extortion Demands After Sensitive Data Breach

Kraken, one of the largest cryptocurrency exchanges in the US, has been targeted by a criminal group demanding payment after two security incidents occurred within the past year. The group claims to have access to sensitive client data and is threatening to release it unless their demands are met.

The exchange's Chief Security Officer, Nick Percoco, revealed that Kraken had identified and shut down two instances of unauthorized access to limited client support data since 2025. In both cases, the exchange immediately launched an investigation, terminated the individual's access, conducted a full inquiry, implemented additional security controls, and notified the affected clients.

Kraken has publicly rejected the extortion demands, stating that they 'will not pay these criminals' and 'will not ever negotiate with bad actors.' The exchange is collaborating with industry partners and law enforcement to investigate and disrupt insider recruitment efforts targeting crypto companies. However, the investigation continues, and Kraken urges anyone with relevant information to come forward.