Kraken Insider Extortion Targets 2,000 Clients

Two thousand Kraken clients, representing 0.02% of the exchange's customer base, had their data compromised by malicious insiders. The breach occurred across two incidents between February 2025 and early this year, during which members of the support team recorded videos of internal systems containing client data. These insiders demanded ransom payments to prevent the release of the footage. Kraken revoked the actors' system access and refused to pay the ransom. The insiders subsequently threatened to release the videos on social media. Kraken is currently working with law enforcement agencies to address insider recruitment across the cryptocurrency, gaming, and telecommunications industries.