Kraken Targeted in Extortion Attempt After Two Insider Access Incidents | LeapRate | Online Trading Industry News, Broker Intelligence & Fintech Analysis

Cryptocurrency exchange Kraken has disclosed that it is being targeted by an extortion attempt from a criminal group threatening to release videos of its internal systems unless demands are met.

Kraken's chief security officer, Nick Percoco, said in a post on X that it follows two separate incidents in which rogue employees gained inappropriate access to limited client support data.

The first incident was identified in February 2025, when Kraken received a tip from a trusted source about a video circulating on a criminal forum appearing to show access to its client support systems.

The employee involved was identified, their access was immediately revoked, a full investigation was conducted and a limited number of affected clients were notified.

A second, more recent incident followed a similar pattern. Another tip, accompanied by a new video showing comparable activity, led Kraken to quickly identify a second individual, terminate their access and notify the small number of affected clients.

Across both incidents, approximately 2,000 client accounts, representing 0.02 percent of Kraken's total client base, were potentially viewed.

Shortly after the second individual's access was terminated, the extortion demands began. The criminals threatened to distribute materials from both incidents to media outlets and on social media. Kraken's Chief Security Officer Nick Percoco stated unequivocally that the firm will not pay and will not negotiate with the individuals involved.

Kraken said it is actively working with federal law enforcement across multiple jurisdictions and believes sufficient evidence exists to support the identification and arrest of those responsible.

The firm noted that similar insider recruitment efforts are targeting gaming and telecommunications organisations as well as crypto companies.