Crypto-exchange Kraken extorted by hackers after insider breach

Kraken cryptocurrency exchange is being extorted by a cybercrime group threatening to release videos of internal systems containing client data. The breach stemmed from insider threats — support employees recruited by the threat actors who improperly accessed limited customer data on two separate occasions. Kraken's CSO confirmed no funds were at risk, approximately 2,000 accounts (0.02% of users) were affected, and the company refuses to pay or negotiate. Kraken is working with federal law enforcement to prosecute those involved. The incident mirrors a similar 2025 Coinbase breach where bribed support agents exposed 70,000 customers at an estimated $400 million cost.