Kraken, one of the largest cryptocurrency exchanges, is confronting an extortion attempt following videos leaked by malicious insiders showing access to its client support systems.
Details of the Incident
In February 2025, a video surfaced on the dark web displaying unauthorized access to Kraken’s client support system. Investigations traced it to a member of the support team, whose access was immediately revoked along with the implementation of enhanced security measures.
Shortly after, another similar video appeared, again linked to a malicious insider. Across both events, only a limited number of client accounts—around 2,000, or 0.02% of total clients—were potentially viewed. No funds were compromised, and the core systems remained secure.
Company’s Stance and Response
Kraken’s Chief Security Officer, Nick Percoco, announced the situation on X, stating: “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.”
He emphasized key points: “Our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors.”
The extortionists demanded payment to prevent distribution of the videos to media and social platforms. Kraken has refused to pay and launched a criminal investigation, confident in the evidence to identify and apprehend the perpetrators.
Insider Threats in Crypto
Malicious insiders pose significant risks to cryptocurrency platforms, rivaling external attacks. Major exchanges like Coinbase, Kraken, and Binance have encountered similar issues. North Korean-linked group Lazarus targets firms via fake job schemes in Operation DreamJob, though they typically steal funds directly rather than extort.
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