Kraken's Inside Job: Rogue Employees Leak 2,000 Clients' Data, Extortionists Demand Payday — Kraken Says 'No Dice'

Kraken's Chief Security Officer Nick Percoco has confirmed the crypto exchange is currently being extorted by criminals who apparently found a loophole in "not your keys, not your coins" – namely, accessing client data through disgruntled insiders. The exchange discovered two separate incidents where staff members decided that leaking client information online was somehow preferable to working normal jobs.

In February 2025, Kraken learned that one of its support staff had leaked client data after receiving a tip about footage apparently circulating on criminal forums – because apparently someone forgot that screenshots exist. Percoco stated the firm immediately revoked the employee's access and implemented additional security controls, presumably including a strongly-worded memo about the terms of employment.

Kraken subsequently uncovered a more recent breach involving another staff member, who was also terminated and had their system access cut off with prejudice. Following this discovery, the criminals reached out with extortion demands, threatening to distribute materials from both incidents to media outlets and on social media if the exchange didn't comply – because nothing says "professional negotiation" like threatening to post someone's private data on the timeline.

"We will not pay these criminals," Percoco stated firmly, in what might be the most reasonable sentence spoken about crypto security all year.

Approximately 2,000 clients were affected in total, representing just 0.02% of Kraken's total client base – a tiny percentage that nonetheless represents real people who definitely won't be sleeping well tonight. All impacted users have been notified, presumably via email, which these customers will now scrutinize with the paranoia of someone expecting the next phishing attempt.

Kraken believes there is sufficient evidence to identify and arrest those responsible and is actively collaborating with federal law enforcement across multiple jurisdictions – because when you combine crypto crime with actual crime, even the FBI pays attention.

A criminal vendor previously