A criminal group is threatening to disclose stolen client data from the cryptocurrency exchange Kraken, as announced by the company on Monday through a social media statement.
Kraken’s Chief Security Officer, Nick Percoco, stated on X: “We will not pay these criminals; we will never negotiate with bad actors.” He elaborated that the firm is being blackmailed by a criminal group, which is threatening to release videos of internal systems displaying client data unless their demands are met. The company is working closely with federal law enforcement across various jurisdictions to apprehend and prosecute those involved.
Percoco revealed that a tip-off recently indicated a video had been created showing sensitive customer information from Kraken’s internal systems, following a security incident in February 2025 where a similar video appeared on a criminal forum. In both cases, the company insiders responsible were identified, yet no customer funds were endangered as there was no actual system breach.
“We have since collaborated with industry partners and law enforcement to investigate insider recruitment efforts targeting not just crypto companies but also those in gaming and telecommunications,” Percoco said.
Approximately 2,000 individuals might have had their information exposed, with those affected already being contacted. The criminals are reportedly threatening to disseminate this data through local media and social networks if Kraken does not yield to their demands.
The company is withholding further details about the incident due to ongoing investigations, and a representative did not respond immediately to Decrypt’s requests for comment.
Percoco expressed confidence that there is enough evidence to identify and arrest those responsible. The extortion attempt coincides with an increase in wrench attacks—physical assaults aimed at accessing victims’ crypto assets—surging over 75% year-over-year, resulting in more than $40 million in confirmed losses last year according to CertiK.
Kraken confidentially filed for an IPO last November but has delayed these plans amid challenging market conditions as reported by CoinDesk this March. In the previous year, a publicly traded competitor, Coinbase, acknowledged a significant data breach affecting over 69,000 customers towards the end of 2024, caused by criminals bribing customer support agents to obtain personal information.
In his statement, Percoco expressed belief in having sufficient evidence to arrest those involved.