Kraken rejects extortion demands after insider access exposes 2,000 accounts

Approximately 2,000 Kraken clients have had their account data potentially viewed by unauthorized individuals after two separate insider breaches. The exchange has notified all affected users, stating that no funds were at risk and the broader platform was never compromised.

The incidents began in February 2025, when Kraken received a tip about a video circulating on a criminal forum showing an employee navigating internal support tools. Kraken identified the employee, revoked their access, and tightened internal security controls. A second, similar incident involving another support staffer occurred more recently, who was also identified and terminated.

Shortly after the second access was cut off, a criminal group began demanding payment to prevent the release of videos showing internal systems and client data. Chief Security Officer Nick Percoco stated on X, "Our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors."

Kraken is now working with law enforcement to track a coordinated insider recruitment operation targeting crypto, gaming, and telecommunications companies. Federal law enforcement across multiple jurisdictions is pursuing the individuals involved.