Kraken refuses extortion payments after insider access exposed 2,000 accounts

Approximately 2,000 client accounts, representing 0.02% of Kraken's user base, were potentially viewed following two separate incidents of inappropriate access by members of the exchange's support team. The first incident occurred in February 2025, when a video of internal client support systems appeared on a criminal forum. A second similar incident was detected more recently. In both cases, Kraken identified the employees involved and terminated their access.

A criminal group began sending extortion demands shortly after the second incident was contained, threatening to release videos of the internal systems and client data to media outlets and social media platforms. Kraken has refused to pay the demands.

Chief security officer Nick Percoco stated on X that funds were never at risk and the company will not negotiate with bad actors. Kraken described the events as part of a broader pattern of insider recruitment targeting crypto, gaming, and telecommunications firms. The exchange is currently working with law enforcement across multiple jurisdictions to identify and arrest those responsible.