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Kraken Halts Monero Deposits Following 51% Network Attack

Kraken paused Monero deposits after Qubic claimed majority network hashrate, prompting security concerns; Monero developers dispute the 51% attack claim while others warn of serious blockchain manipulation risks.

XMR

Fact Check
Multiple recent news sources (Sources 5, 7, 10) and community discussions (Source 9) explicitly state that Kraken halted Monero (XMR) deposits because of a potential 51% network attack from the Qubic mining pool. Kraken's official status page (Source 2) confirms that XMR deposits are halted while they monitor a situation for safety, which corroborates the action.
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Summary

Kraken has suspended Monero (XMR) deposits after confirming that one mining pool, Qubic, gained control of more than 50% of the network’s hashrate. Qubic, led by founder Sergey Ivancheglo, stated it reorganized six blocks and aimed to monopolize Monero’s mining, potentially enabling double-spending and transaction censorship. The pool initially lost hashrate after an August 4 DDoS attack but later regained strength to claim majority control, following a month-long contest for dominance. Monero developers dispute that the event proves a full 51% attack, while some cybersecurity experts contend the takeover succeeded. Trading and withdrawals remain active on Kraken as it monitors the situation.

Terms & Concepts
  • 51% attack: A scenario where one entity controls more than half of a blockchain's mining power, enabling possible block history changes, transaction censorship, or double-spending.
  • Hashrate: The total computational power used to maintain and secure a blockchain network; higher distribution reduces centralization risks.
  • Block Reorganization (Reorg): A process where part of a blockchain is replaced with a different chain segment, potentially reversing transactions if done maliciously.