carlo martinuzzi

Kraken Security Update 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. 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 identified and shut down two instances of inappropriate access to limited client support data. In February 2025, we received a tip from a trusted source regarding a video shared on a criminal forum that appeared to show access to our client support systems. We immediately launched an investigation and quickly identified the individual involved as a member of our support team. Their access was revoked immediately, a full investigation was conducted, additional security controls were put in place and a limited number of affected clients were notified. Since then, we have been collaborating with industry partners and law enforcement to investigate and disrupt insider recruitment efforts targeting not only crypto companies, but also gaming and telecommunications organizations. More recently, we received another tip, along with a new video showing similar activity. We quickly identified the individual involved and terminated their access. As before, we acted immediately to revoke access, conduct a full investigation, and notify the small number of affected clients. Across both incidents, only a very small number of client accounts were potentially viewed - approximately 2,000 in total (0.02% of clients). Shortly after access was terminated, we began receiving extortion demands. The criminals threatened to distribute materials from both the February 2025 incident and the recent incident to media outlets and on social media if we did not comply. We will not pay these criminals. Based on intelligence gathered across both incidents, along with extensive ongoing analysis, we believe there is sufficient evidence to support the identification and arrest of those responsible. We are actively working with federal law enforcement across multiple jurisdictions to pursue all individuals involved and bring them to justice. Due to the ongoing investigation, we cannot share additional details at this time. However, anyone with relevant information is encouraged to contact us directly. The security of our clients is our highest priority, and we remain fully committed to combating the growing global threat of insider recruitment and constantly enhancing our security practices to combat new threats. Note: If you are a client potentially affected by this, you've already been notified.

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First Lady Melania Trump arrives at the White House for her “Fostering the Future Together” roundtable on AI education next to humanoid robot Figure 03.