Kraken Tells Extortionists to Take a Hike: 'We Will Not Pay These Criminals'

Kraken's chief security officer Nick Percico made one thing clear on Monday: the exchange won't be forking over any crypto to extortionists. Actually, wait — it's Nick Percoco. My bad. But his message hit harder than a 3x leverage liquidation on a Sunday night.

In a post on X, Percoco reported that an unnamed criminal group attempted to shake down the exchange, threatening to release videos of internal systems showing client data. The demand amount? Still under wraps. Because nothing says "serious cybercriminal" like keeping your asking price a mystery, apparently.

"We will not pay these criminals," Percoco said. "We will not ever negotiate with bad actors." Bold words. The kind of words that make you either cheer or start checking your 2FA setup immediately.

Good news for users: Kraken's systems "were never breached" and funds remained safe. However, there were indeed two incidents of "inappropriate access" to client data — one in February 2025 and another more recently — affecting roughly 2,000 user accounts. The exchange is now working with federal law enforcement, with potential arrests potentially in the cards. So yeah, someone's probably getting a very uncomfortable knock on their door soon.

This isn't exactly a novel plot in crypto land. Coinbase found itself in similar hot water back in May 2025, when cybercriminals threatened to leak user data while demanding $20 million. That breach snagged data from about 70,000 users, courtesy of some bribed customer support contractors. Nothing says "we take security seriously" like a support rep who thought $20M was a better career move than dental insurance.

The broader picture? March 2026 saw over $178 million lost to major crypto incidents — a hefty jump from February's $49.3 million, according to blockchain intelligence firm Nominis. Authorization abuse continues reigning as the favorite attack vector, with victims unknowingly signing away access to their funds. Remember, kids: if a smart contract asks for more permissions than your ex wants back, maybe don't sign it.

Kraken's hardline stance? A refreshing "no negotiate" energy in an industry that keeps getting tested. Let's see how long this resolve lasts when someone dangles the right number in front of them. No? Good. Maybe? We'll find out.