The Kraken cryptocurrency exchange has announced that a cybercriminal group is trying to defraud the company by threatening to release videos showing internal systems that hold client data.
The company’s Chief Security Officer, Nick Percoco, said the incident did not put customer funds at risk and involved an insider threat, with two instances of improper access to customer data limited by support staff.
Kraken says he will not pay or negotiate with a threatening actor.
“We are currently being scammed by a group of criminals who are threatening to release videos of our internal systems with customer data displayed if we do not comply with their demands,” said Percoco.
“It is important that we start with the most important points: our systems have never been compromised; funds have never been compromised; we will not pay these criminals; we will never negotiate with bad actors again.”
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Kraken is a US-based cryptocurrency exchange that allows millions of users across 190 countries to buy, sell, and trade digital assets such as Bitcoin, Ethereum, and 200 others.
It is considered one of the largest and most established trades, with a daily trading volume of hundreds of millions of US dollars.
Following a “tip from a reliable source” in February 2025 about hackers broadcasting a video showing access to customer support systems, Kraken began an investigation and found a support worker employed by the threat actor.
Recently, Kraken received a tip about another, more recent video showing internal access to its systems.
In both cases, the company responded quickly by revoking the employee’s access, launching an investigation, and tightening controls. When user exposure is identified, Kraken notifies affected users directly.
According to Percoco, the incident only affects 2,000 accounts, which represent 0.02% of Kraken’s user base. In this subsection, the disclosed information is reported to only affect customer support data.
Kraken said that its investigation has gathered enough evidence to legally prosecute all the people involved who tried to defraud them, and the company is working closely with law enforcement in many areas to achieve this goal.
Insider threats and malicious recruitment is a widespread problem affecting many industries, especially the cryptocurrency sector.
In mid-2025, it was revealed that another major American cryptocurrency, Coinbase, suffered a data breach after hackers tricked employees of an India-based customer support center into divulging confidential customer support information.
In that case, the incident affected 70,000 customers, and Coinbase estimates that the financial damage totaled $400 million.
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