• Kraken’s Chief Security Officer Nick Percoco confirmed on April 13, 2026, that the exchange will not pay extortion demands.
• Two insider incidents in February 2025 and early 2026 exposed limited support data from roughly 2,000 Kraken accounts.
• Kraken is coordinating with federal law enforcement across multiple jurisdictions and believes enough evidence exists for arrests.

Chief Security and Information Officer Nick Percoco disclosed the extortion attempt in a post on X. He stated that Kraken’s core systems were never breached, that customer funds were never at risk, and that the company will not pay.

The incidents trace back to two separate cases of insider access. The first occurred in February 2025, when Kraken received a tip about a video circulating on a criminal forum. The footage showed a support team member accessing client support systems without authorization. Kraken identified the individual, revoked access, conducted an internal investigation, strengthened security controls, and notified the affected clients.

A second, more recent incident followed the same pattern. Another support team member accessed similar systems without authorization. Kraken again identified the person, terminated access, investigated, and notified the small number of clients whose data was viewed.

Across both incidents, approximately 2,000 client accounts were potentially exposed. That figure represents 0.02% of Kraken’s total user base. The accessed data was limited to support-level information. No private keys, funds, or core trading infrastructure were involved.

Extortion demands began shortly after access was cut off in the second incident. The criminal group threatened to distribute materials from both incidents to media outlets and social media platforms if their demands were not met.

Percoco said Kraken has already notified all potentially affected clients directly. He added that the company is working with federal law enforcement across multiple jurisdictions and with industry partners on an ongoing investigation.

The exchange believes there is sufficient evidence to support arrests. Kraken described the activity as part of a broader effort by criminal networks to recruit insiders at high-value companies, including cryptocurrency exchanges, gaming firms, and telecommunications providers.

Kraken has stated it will continue strengthening its security practices against insider threats. The company said it cannot share additional details publicly while the law enforcement investigation is active.

On X, responses ranged from support for Kraken’s refusal to pay to criticism over the use of outsourced or contracted support roles. No video footage has appeared publicly as of April 13, 2026. Kraken said customers who received a direct notification should follow any guidance provided. Users who were not contacted have no action required.

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