Kraken faces ransom demand after insider data breach

As outlined in HackRead, cryptocurrency exchange Kraken is currently confronting a ransom demand from unidentified hackers following two distinct security incidents. The attackers are leveraging stolen video recordings of internal customer management systems, but Kraken, operated by Payward Inc., has firmly stated its refusal to negotiate or pay the perpetrators.

The incidents began in February 2025 when Kraken discovered a video on a criminal forum, tracing it back to a support staff member. Despite blocking access and enhancing security, a second, similar incident occurred, again involving a support team member misusing their access. Hackers may have viewed data from approximately 2,000 accounts, representing 0.02% of Kraken's user base.

While Kraken asserts no full system breach occurred, the stolen videos are the basis for the extortion attempt. The exchange is cooperating with international law enforcement and working with other firms to counter insider recruitment efforts targeting the crypto, gaming, and telecom sectors.

Source: HackRead