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Kraken extorted by criminal gang, refuses to compromise and cooperates with law enforcement investigation

Deep Tide TechFlow news, April 14, according to CoinDesk, cryptocurrency exchange Kraken was extorted by a criminal gang, who threatened to release internal system videos. Kraken stated that it had previously identified and handled two incidents of unauthorized access by insiders, involving limited customer data from approximately 2,000 accounts (0.02% of total users), but the system was never breached, and customer funds remained secure. The company’s Chief Security Officer, Nick Percoco, made it clear they would not compromise with criminals, having already notified affected users, enhanced security controls, and collaborated with law enforcement to advance the investigation, believing existing evidence is sufficient to identify and arrest those responsible. Additionally, Galaxy Digital recently experienced a similar cybersecurity incident, but likewise, no customer funds or data were lost.