TLDR
- Criminal actors are demanding payment from Kraken in exchange for not releasing footage showing the exchange’s internal operations
- Chief Security Officer Nick Percoco has confirmed no systems were compromised and all customer assets remain secure
- Approximately 2,000 user accounts may have been viewed during two distinct episodes occurring in February 2025 and recently
- The exchange is collaborating with federal authorities and has successfully stopped one blackmail effort
- Similar incidents hit Coinbase in May 2025, with attackers seeking $20 million after accessing information from roughly 70,000 customers
The cryptocurrency exchange Kraken has publicly declared it will not comply with demands from a criminal organization that recorded videos showing its internal operational systems. Chief Security Officer Nick Percoco disclosed this position through a statement on X this Monday.
Kraken Security Update
We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands. It’s important to start with the most important points: our systems were never…
— Nick Percoco (@c7five) April 13, 2026
According to Percoco, the perpetrators captured video recordings of Kraken customer support personnel while they were accessing client information systems. This footage is now being weaponized to extract an undisclosed sum from the company.
“We will not pay these criminals,” Percoco declared. “We will not ever negotiate with bad actors.”
The exchange has verified that none of its core systems experienced a complete security breach. At no stage during either occurrence were customer assets placed in jeopardy.
The situation involves two distinct security episodes. The initial event transpired in February 2025, when evidence suggests a Kraken support team member recorded footage of internal platforms. A subsequent incident displaying comparable characteristics occurred more recently.
During both episodes, Kraken responded swiftly to detect the security risk and terminate unauthorized access. The organization reports it has already neutralized one blackmail scheme linked to these activities.
Approximately 2,000 customer accounts at Kraken were potentially accessed during these two security incidents. The exchange confirms it has contacted all potentially impacted individuals.
Federal Authorities Join Investigation
Kraken has enlisted federal law enforcement agencies to pursue the criminal organization responsible. Percoco indicated the ongoing investigation may result in criminal charges and apprehensions.
The platform is additionally partnering with cybersecurity specialists across the industry. Percoco explained the company is joining forces to “investigate and disrupt insider recruitment efforts” that target cryptocurrency, gaming, and telecommunications sectors.
Internal security threats have emerged as an escalating concern throughout the cryptocurrency sector. The North Korean cybercriminal organization Lazarus Group has gained notoriety for infiltrating legitimate businesses with operatives, with security researchers documenting no fewer than 60 confirmed Lazarus-connected developers working within crypto organizations.
Coinbase Experienced Comparable Extortion
This isn’t an isolated incident affecting major cryptocurrency platforms. During May 2025, Coinbase revealed that cybercriminals attempted to extort $20 million by threatening to expose customer information.
That security compromise impacted approximately 70,000 customers and resulted from corrupt overseas customer service contractors accepting bribes.
Cryptocurrency security incidents have shown an upward trajectory. During March 2026, losses from significant crypto security breaches exceeded $178 million, representing a substantial increase from the $49.3 million recorded in February, based on data from blockchain intelligence provider Nominis.
Authorization exploitation emerged as the predominant attack vector in March, wherein targets inadvertently approved malicious transactions granting cybercriminals direct control over their digital assets.
Percoco emphasized that protecting Kraken clients remains the platform’s “highest priority” and affirmed the organization’s commitment to continuously strengthening defensive measures against evolving security challenges.
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