Kraken Halts Monero Deposits Amid 51% Attack

What to Know:

Kraken pauses Monero deposits following a 51% attack by Qubic.
Event highlights potential vulnerabilities in PoW systems.
Monero exchange flow affected; trading and withdrawals continue.

kraken-pauses-monero-deposits-after-51-attack — Kraken Pauses Monero Deposits After 51% Attack

Kraken, a major cryptocurrency exchange, paused Monero (XMR) deposits after the Qubic mining pool executed a 51% attack on Monero’s network, affecting blockchain integrity.

This incident raises concerns about the security of privacy-centric cryptocurrencies and highlights the potential vulnerabilities of medium-scale Proof-of-Work blockchains.

Kraken, a major crypto exchange, temporarily ceased Monero deposits after a 51% attack by Qubic mining pool, disrupting the network’s security.

This incident highlights vulnerabilities in Monero’s network, underlining the potential risks to its integrity and causing heightened scrutiny of privacy-centered cryptocurrencies.

Qubic Mining Pool Executes Monero 51% Attack

Kraken has paused Monero deposits after the Qubic mining pool executed a 51% attack, gaining majority control. This allowed for a blockchain reorganization compromising network integrity. Qubic mining temporarily held more than half of Monero’s hashrate. Kraken issued a statement emphasizing deposit suspension until network conditions are stabilized.

“As a security precaution, we have paused Monero (XMR) 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. We are actively monitoring the situation and will resume deposits once we determine it is safe to do so. Trading and withdrawals for XMR remain fully operational.”

Community Concerns Over Centralization Rise

The attack spurred community concern over centralization risks in PoW models. Monero transactions on Kraken were impacted, though trade and withdrawals remained intact.

Privacy coin scrutiny in the market may increase as security dynamics are questioned. Institutional responses are mostly absent; focus remains on Monero’s robustness.

51% Attack Exposes PoW Security Flaws

Similar past incidents, like the March 2024 DoS attack on Monero, did not reach this scale. PoW blockchains face long-standing security challenges. Consensus breaches raise questions about PoW sustainability. Future discussions likely involve enhanced decentralization measures to prevent single-entity control over hashrate.

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