Kraken Refuses Extortion Demand Over Internal System Footage

Security Breach Attempted Against Kraken

Digital asset exchange Kraken is currently fending off a criminal extortion attempt. A group of bad actors has threatened to leak videos purportedly showing the company’s internal systems. The exchange confirmed the incident, stating that the attackers are attempting to coerce the firm through threats of data exposure.

Kraken’s Chief Security Officer, Nick Percoco, addressed the situation directly. He clarified that the threat does not involve any actual breach of client funds or personal account data. According to Percoco, the company’s internal controls remain intact, and no customer information is at risk despite the attackers’ claims.

The Nature of the Threat

The extortionists reached out to Kraken to demand payment, claiming they could expose videos that depict internal company operations. Percoco noted that the group is using the threat of a public release to force a response. The exchange has refused to comply with these demands.

"We have not been breached, and no client data or funds have been accessed," said Nick Percoco, Chief Security Officer at Kraken.

Instead of paying the ransom, Kraken’s security team is working to verify the claims. The firm indicated that the attackers likely gained access to a limited number of internal screenshots or low-level operational footage. The company is treating the matter as a criminal investigation.