**Kraken**, a major player in the cryptocurrency exchange market, has announced it is the target of an extortion attempt following an insider threat incident. ### Insider Access and Extortion According to **Kraken**'s Chief Security Officer, **Nick Percoco**, the incident involved two instances of improper access to limited customer data by support employees. The attackers are now threatening to release videos of **Kraken**'s internal systems showing client data unless their demands are met. "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**. **Kraken** has firmly stated that it will not pay or negotiate with the threat actors. ### Limited Impact and Swift Response **Kraken** reports that the incident affected approximately 2,000 accounts, representing a mere 0.02% of its user base. The exposed information is reportedly limited to client support data. The company says that upon receiving tips about the videos, they reacted quickly by revoking the employees' access, launching investigations, and strengthening controls. Affected users have been directly notified. ### Legal Action and Law Enforcement **Kraken** is pursuing legal action against those involved in the extortion attempt and is working closely with federal law enforcement across multiple jurisdictions. ### A Broader Industry Problem Insider threats and malicious recruitment are a growing concern within the cryptocurrency sector. In mid-2025, **Coinbase** experienced a data breach after hackers bribed employees of a customer support agency in India to disclose private client support information, impacting 70,000 customers and resulting in an estimated $400 million in financial damages.