Kraken Faces Extortion Attempt After Insider Security Incidents Cryptocurrency exchange Kraken disclosed an extortion attempt by a criminal group threatening to release videos allegedly showing unauthorized access to internal systems containing client data. The Wyoming-based firm confirmed two separate incidents in 2025 involving rogue employees within its support team, both of which were swiftly contained. In February, Kraken received a tip about a video circulating on a criminal forum, prompting an internal investigation that identified the individual responsible. The company revoked their access, implemented additional security controls, and notified affected clients. A second, similar incident occurred more recently, leading to another termination and user notifications. Kraken emphasized that its systems were never breached, client funds remained secure, and it would not negotiate with the extortionists. Approximately 2,000 accounts roughly 0.02% of its customer base were potentially exposed across both incidents. The exchange is collaborating with law enforcement and industry partners to investigate what it describes as a broader insider recruitment campaign targeting crypto, gaming, and telecommunications firms. The incidents highlight persistent security challenges in the crypto industry, where high-value assets and human vulnerabilities create attractive targets for attackers. Recent exploits, such as the Drift protocol breach, demonstrate increasing sophistication, combining technical exploits with social engineering to evade detection. Kraken, founded in 2011, serves retail and institutional clients globally, offering trading, custody, and staking services. The company has reiterated its commitment to security and regulatory compliance amid evolving threats. Separately, Galaxy Digital reported containing a cybersecurity incident in an isolated development workspace, with no impact on client funds or data.