- Kraken halts Monero deposits post-security breach.
- Qubic mining pool claims 51% control.
- Monero price drops 14% after attack.
Kraken, a major crypto exchange, suspended Monero deposits on August 16, 2025, following a 51% attack by Qubic mining pool on Monero’s network, raising security concerns.
The event highlights vulnerabilities in privacy-focused cryptocurrencies, potentially impacting investor confidence and market valuation.
Kraken, a leading cryptocurrency exchange, paused Monero deposits on August 16, 2025, following a 51% attack. This attack compromised the network’s integrity, raising questions about mining centralization and security vulnerabilities within privacy-centered protocols.
The incident saw Qubic mining pool gaining control over half of Monero’s hashrate. Kraken, led by CEO Dave Ripley, announced the suspension as a security precaution, emphasizing the risks posed by the attack.
“As a security precaution, we have paused Monero deposits after detecting that a single mining pool has gained more than 50% of the network’s total hashing power. This concentration of mining power poses a potential risk to network integrity.” — Dave Ripley, CEO, Kraken [Source]
Monero’s market reacted sharply, with its price falling by 14% after the attack. Trading and withdrawals remain unaffected on Kraken, showcasing the exchange’s commitment to maintaining other services during security challenges.
No immediate institutional reactions occurred; however, regulatory scrutiny may increase for privacy-focused coins like Monero. History shows that similar attacks on other PoW networks led to temporary suspensions and market volatility.
Monero community members expressed frustration over the lack of prompt communication from the core developers. The absence of an official response has intensified the call for transparency and proactive security measures.
The event underscores the potential for centralization threats in blockchain networks. Historical trends suggest heightened regulatory interest in privacy coins, especially those impacted by similar vulnerabilities, focusing on enhancing network security protocols.
