Kraken says a criminal group is trying to extort the exchange by threatening to release videos showing internal client-support systems after recruiting support employees to access limited customer data. The company reports no systems were breached and no funds were at risk, has revoked access, notified affected users (about 2,000 accounts), will not pay or negotiate, and is working with law enforcement. #Kraken #Coinbase
Keypoints
- Criminal group is extorting Kraken with threats to release videos of internal support systems displaying client data.
- The incident involved insider threats, with two instances of support employees improperly accessing limited customer support data.
- Kraken states no systems were breached and client funds were never at risk; roughly 2,000 accounts were affected (0.02% of users).
- The company refused to pay or negotiate, revoked employee access, notified impacted users, strengthened controls, and is pursuing legal action with law enforcement.
- The case underscores broader industry risks from malicious recruitment, similar to a prior Coinbase support-data breach affecting 70,000 customers.