The Kraken cryptocurrency exchange announced that a cybercrime group is trying to extort the company by threatening to release videos showing internal systems that host client data. The company’s Chief Security Officer, Nick Percoco, stated that the incident did not put client funds at risk and involved an insider threat, with two instances of improper access to limited customer data by support employees. Kraken says that it will not pay or negotiate with the threat actor. “We are currently being extorted by a criminal group threatening to release videos of our internal systems with client data shown if we do not comply with their demands,” stated Percoco. “It’s important to start with the most important points: our systems were never breached; funds were never at risk; we will not pay these criminals; we will not ever negotiate with bad actors.” Kraken is a U.S.-based cryptocurrency exchange that enables millions of users across 190 countries to buy, sell, and trade digital assets such as Bitcoin, Ethereum, and 200 others. It is considered one of the largest and most established exchanges, with a daily trading volume of hundreds of millions of U.S. dollars. Following a “tip from a trusted source” in February 2025 about cybercriminals circulating a video demonstrating access to its client support systems, Kraken initiated an investigation and uncovered a support employee recruited by the threat actor.