revealed<\/a> that their company has been targeted by extortionists who claim to have evidence of vulnerabilities in Kraken\u2019s systems affecting client data.<\/p>\nIn an official security announcement, CSO Percoco confirmed that Kraken had successfully detected and mitigated two incidents of unauthorized access to specific client support data within the last year. The exchange received alerts regarding a video circulating on a criminal forum, which purportedly demonstrated unauthorized access to Kraken\u2019s client support platform.<\/p>\n
\u201cFollowing the alert, we acted swiftly to launch an internal investigation and were able to identify an individual connected to our support team,\u201d Percoco stated. \u201cImmediate measures were taken to revoke access and initiate a comprehensive investigation, along with additional security protocols.\u201d<\/p>\n
A subsequent incident led to another investigation after a report indicated a new video showcasing similar unauthorized access, resulting in prompt termination of the suspect\u2019s access and notification of potentially affected clients.<\/p>\n
\u201cSoon after severing access, we started receiving extortion demands,\u201d the CSO highlighted. \u201cThese individuals threatened to disseminate incriminating materials from both incidents to various media platforms unless we complied with their requests.\u201d<\/p>\n
Percoco made it clear that Kraken\u2019s systems had not been breached and asserted that client funds remained secure. He also disclosed that only a small fraction of client accounts\u2014approximately 2,000 or just 0.02%\u2014might have been exposed during the breaches.<\/p>\n
Kraken has firmly rejected these extortion attempts, proclaiming that they \u201cwill not engage with criminals\u201d and \u201crefuse to negotiate with malicious parties.\u201d<\/p>\n
Additionally, the exchange has expressed its commitment to collaborating with law enforcement agencies and industry partners to investigate and thwart insider threats targeting not just crypto firms but also various sectors, including gaming and telecommunications.<\/p>\n
Based on intelligence from both incidents, Kraken believes there is ample evidence to arrest the individuals involved. However, they did not disclose further details as the investigation remains ongoing. The exchange has encouraged anyone with relevant information to reach out directly.<\/p>\n
This development follows Kraken\u2019s recent achievement, marking a significant milestone for the crypto community as it became the first exchange to gain direct access to the Federal Reserve\u2019s core payment infrastructure, having secured approval for a master account from the Kansas City Federal Reserve.<\/p>\n