Kraken Suspends Monero Deposits Following 51% Attack

Kraken has halted Monero deposits following a 51% attack by Qubic mining pool, disrupting Monero’s blockchain due to majority network control.

This incident raises concerns about network vulnerabilities and impacts Monero’s market position, as well as trust in decentralized mining security.

Kraken has paused Monero (XMR) deposits after Qubic mining pool gained majority hashrate control, raising security concerns.

This event highlights vulnerabilities in Monero’s network, causing trading fluctuations and sparking discussions on mining decentralization.

Qubic Mining Pool Secures Over 50% Hashrate

Kraken, a major cryptocurrency exchange, suspended Monero deposits as a precaution. The move followed the Qubic mining pool gaining over 50% of Monero’s hashrate, leading to potential chain reorganization.

The Qubic mining pool briefly controlled the network’s computational resources, enabling transaction censorship. This raised alarms among Monero project developers and the broader crypto community.

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.

Monero Drops 13% Amid Security Concerns

The attack resulted in a sharp 13% drop in Monero’s price, with the market cap decreasing by over $300 million. Trading activities continue, but deposit restrictions remain.

This incident underscores the issue of mining centralization, prompting community members to advocate for smaller, decentralized mining pools to safeguard network integrity.

Previous Attacks Highlight Persistent Vulnerabilities

Monero faced a similar crisis with a flooding attack in 2024. However, this is the first significant breach via mining power. Previous 51% attacks on Ethereum Classic highlighted similar vulnerabilities.

Industry experts warn of the potential for sustained attacks if decentralization isn’t prioritized. Should attacks continue, Monero’s standing on exchanges could weaken further, affecting liquidity.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.