'We Will Not Pay These Criminals': Crypto Exchange Kraken Is Being Extorted Over Stolen Data

A criminal group is threatening to release stolen customer data from crypto exchange Kraken, the firm reported Monday, publicly disclosing the conflict via social media.

“We will not pay these criminals; we will not ever negotiate with bad actors,” Kraken Chief Security Officer Nick Percoco posted on X.

“We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands,” Percoco added. “We are actively working with federal law enforcement across multiple jurisdictions to pursue all individuals involved and bring them to justice.”

According to Percoco, the firm recently received a tip that a video was made showcasing sensitive customer information from its internal systems. That tip follows a February 2025 security incident in which a similar video, containing customer information, was shared on a “criminal forum.” 

In each instance, the individual involved from within the company was identified. No customer funds were at risk, Percoco said, and internal systems were not breached. 

“Since then, we have been collaborating with industry partners and law enforcement to investigate and disrupt insider recruitment efforts targeting not only crypto companies, but also gaming and telecommunications organizations,” said Percoco. 

The firm’s security executive approximated that around 2,000 individuals potentially had their information viewed, and anyone at risk has already been contacted. The criminals are allegedly threatening to share that information with local media and across social media networks if Kraken does not comply with their demands. 

Additional details about the incident are not being shared by the firm at the time, due to the ongoing investigation. A representative for the firm did not immediately respond to Decrypt’s requests for comment.

In his statement, Percoco said he believes there is sufficient evidence to identify and arrest the malicious actors. 

The extortion attempt comes at a time when wrench attacks, or physical attacks in order to gain access to a victim’s crypto holdings, have jumped more than 75% year-over-year. Last year alone, more than $40 million in confirmed losses were attributed to wrench attacks, according to a report from CertiK, following headlines detailing grisly attacks on industry workers and investors.

Kraken confidentially filed for IPO in November of last year, but quietly delayed those plans this year due to difficult crypto market conditions, according to a March report from CoinDesk.

Last year, its publicly traded competitor Coinbase indicated that it had suffered a major data breach that impacted more than 69,000 customers at the end of 2024. The exploit was the result of criminals bribing Coinbase’s customer support agents for access to names, addresses, and more.