Kraken Refuses Extortion Demands After Insider Access Exposed 2,000 Accounts
CS
Cora Sullivan
crypto exchange hack · Apr 13, 2026
Source: DojiDoji Data Terminal
Approximately 2,000 Kraken client accounts were potentially viewed following two insider-related security incidents involving members of the support team. The exchange notified the affected users, stating that the exposed information was limited to support data and did not include sensitive financial controls.
These incidents occurred when individuals within the support team used internal tools to gain unauthorized access to limited client data. The first incident was identified in February 2025 after a tip about a video circulating on a criminal forum. The second incident emerged later after a similar tip regarding a different individual. In both cases, Kraken revoked the access of those involved and implemented additional security controls.
Shortly after the latest access was cut off, a criminal group began issuing extortion demands, threatening to release videos of internal systems. Nick Percoco, chief security and information officer of Payward and Kraken, stated that the company will not pay the criminals or negotiate with the company.
Kraken is now working with law enforcement across multiple jurisdictions to investigate what it describes as broader insider recruitment efforts targeting crypto, gaming, and telecommunications firms. The company believes there is sufficient evidence to identify and arrest those responsible.