Kraken Reports Insider Incidents but Confirms No System Breach

TLDR

• Kraken identified and contained two insider-related access incidents involving limited client data.
• The company confirmed that no systems were breached and no client funds were at risk.
• About 2,000 accounts were potentially viewed, representing only 0.02% of users.
• Kraken rejected extortion demands and is cooperating with law enforcement authorities.
• Galaxy Digital reported a separate cybersecurity incident with no impact on client data or funds.

Kraken confirmed an extortion attempt involving internal access claims, while it denied any system breach or fund risk. The company said it contained two insider-related incidents and limited data exposure. It also stated that affected accounts represented about 0.02% of its global user base.

Kraken Rejects Extortion Attempt and Secures Internal Systems

Kraken reported that attackers tried to extort the firm using alleged internal access videos. However, the company said its systems remained secure, and funds stayed protected.

The firm identified two separate incidents involving support staff access and limited client data visibility. It removed both individuals quickly and enforced tighter security controls after internal investigations.

Kraken said the first case emerged in February 2025 after it received a tip about a circulating video. The company then revoked access, identified the individual, and informed affected users.

Later, Kraken received another tip about a similar video linked to a different insider. It terminated access again and notified impacted users while strengthening safeguards.

Kraken said about 2,000 accounts were potentially viewed across both incidents. However, the firm emphasized that millions of users remained unaffected by the events.

Insider Access Cases Highlight Targeted Attack Attempts

Kraken reported that extortion demands followed shortly after it blocked the latest unauthorized access. The group threatened to release materials through media channels and social platforms.

The company confirmed it will not comply with any demands from the attackers. It also said it is working closely with law enforcement agencies and industry partners.

Kraken believes the case connects to wider insider recruitment efforts targeting crypto and technology firms. It stated that investigators have enough evidence to identify suspects.

The exchange added that it continues to improve internal monitoring and employee access controls. It also said it reviews processes to prevent similar incidents.

The firm stressed that no funds were lost and no core systems were compromised. It maintained that its infrastructure remained secure throughout both events.

Related Cybersecurity Event Reported by Galaxy Digital

Galaxy Digital also disclosed a separate cybersecurity incident involving unauthorized access. The company said the breach affected an isolated development workspace.

Galaxy Digital confirmed that no client funds or account data were exposed. It stated that the incident remained contained within internal systems.

The firm acted quickly to block access and investigate the situation. It also confirmed that operations continued without disruption.

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