The issue did not stem from an external hack but from internal misuse of access privileges. Once detected, Kraken quickly revoked access, terminated the employees involved, and notified affected users. The company emphasized that the exposure was limited strictly to support tools and did not impact trading systems or account balances.

Despite the contained nature of the incident, a criminal group is now attempting to blackmail the exchange by threatening to release internal videos showing sensitive data. Kraken has refused to comply, instead choosing to work with law enforcement—signaling a firm stance against cyber extortion in the crypto industry.