Kraken Crypto Exchange Reports Unauthorized Access to Customer Data by Alleged Criminal Group

Crypto Exchange Kraken Targeted by Extortion Group

Kraken, one of the world's oldest crypto exchanges, has been extorted by a criminal group that claims to have access to some client account information. According to a post on the X social network by Nick Percoco, chief security officer for Kraken, client funds were never at risk. The exchange did not disclose the amount being sought by the group.

The extortion attempt is linked to two incidents in 2025 and earlier this year, in which client support staffers took photos and videos of client data. A person familiar with the matter revealed that some limited client information, including names and addresses, may have been stolen. Kraken informed approximately 2,000 clients who may have been affected to be cautious when interacting with them.

Customer support has been a frequent target of attacks on crypto exchanges in recent years. For example, hackers bribed customer service agents at Coinbase Global Inc. to steal client data, and then demanded a $20 million ransom to delete it. Kraken was able to repel a similar attack at that time.

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The shift towards targeting the human layer of crypto exchanges is a concerning trend. As technical defenses become stronger, the focus moves to the people inside the system, especially those whose job is to be accessible and helpful. This was highlighted by the recent hack on the decentralized finance project Drift, which drained nearly $300 million in digital assets from the protocol.

Kraken is actively working with federal law enforcement across multiple jurisdictions to pursue all individuals involved and bring them to justice. The extortion attempt comes at a time when the crypto market is facing headwinds, with Bitcoin down more than 40% since its all-time high in October.