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Monero Attack: Kraken Suspends XMR Deposits Until It Is ‘Safe’

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Crypto exchange Kraken has announced a temporary stoppage of Monero (XMR) token deposits on its platform. This move comes in response to the ongoing 51% attack against the Monero blockchain, an open-source protocol and privacy-focused network.

For context, a 51% attack refers to a situation where a group of miners gains more than 50% of a blockchain’s mining hash rate. On Tuesday, August 12, Qubic, a project led by IOTA co-founder Sergey Ivancheglo, claimed that it has seized control of the majority of the Monero blockchain’s hash rate. 

According to the Qubic mining pool, the 51% attack was executed using a useful proof-of-work (uPoW or UPoW) mechanism. As reported on Bitcoinist, the Qubic team is taking half the mining profits in XMR, converting them into USDT to buy QUBIC tokens, and then sending them to a burn address.

Why Did Kraken Suspend Monero Deposits On Its Platform?

In an August 15 update on its website, Kraken announced that it is temporarily stopping the deposit of Monero tokens on its trading platform after detecting that a single mining pool has taken control of more than half of the blockchain’s total hashing power.

The cryptocurrency exchange said:

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.

Following the release of Qubic’s claim, emerging reports on social media platform X revealed that there indeed was a six-block reorganization on the Monero blockchain, suggesting that the team does control a large enough portion of the hash rate.

As Kraken mentioned, it is worth noting that Qubic’s seizure and control of the majority of Monero’s total hashing power could be significantly detrimental to the decentralized ethos of blockchain technology. As it stands—with Qubic controlling 51% of the hash rate, the network is at risk of transaction censoring, double spends, and blocks reorganization, undermining the blockchain’s integrity.

XMR Price Overview

The reaction of the XMR price to these claims of a 51% attack on the Monero blockchain has been fairly measured. While the altcoin did lose more than 10% of its value immediately the news broke out and a further 5% in the subsequent days, the Monero token seems to be recovering well.

As of this writing, the Monero token is valued at around $265, reflecting a nearly 12% jump in the past 24 hours. Meanwhile, CoinGecko data shows that the altcoin is down by only 4% on the weekly timeframe.

The price of XMR on the daily timeframe | Source: XMRUSDT chart on TradingView

Featured image from iStock, chart from TradingView

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Can Monero’s XMR price surge 40% and revisit all-time high?
Crypto Trends

Kraken freezes Monero deposits, Qubic grabs 51% hashrate

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Kraken suspended Monero deposits after detecting that a single mining pool gained majority control of the network’s hashrate.

The exchange cited security concerns following what appears to be a successful 51% attack on the privacy-focused blockchain.

“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,” Kraken announced Friday.

The exchange added that the concentration of mining power poses a potential risk to the network’s integrity.

Source: Kraken announcement

Qubic, an AI-focused blockchain and mining pool, claimed it achieved 51% hashrate dominance over Monero following a month-long technical confrontation.

“After a month-long, high-stakes technical confrontation, Qubic reached 51% of Monero’s hashrate dominance, successfully reorganizing the blockchain,” Qubic representatives announced Tuesday.

Pool survives denial of service counterattack

While Monero community members initially denied the attack claims, mining pool statistics now confirm Qubic as the dominant Monero miner.

Qubic faced resistance during its takeover attempt, briefly falling to seventh place among Monero miners. On August 4, the pool suffered a denial-of-service (DDoS) attack, which significantly reduced its computational power.

The DDoS attack dropped Qubic’s hashrate from 2.6 gigahashes per second to just 0.8 GH/s, according to Sergey Ivancheglo, who claimed responsibility for the 51% attack. Denial-of-service attacks flood networks with fake traffic, disrupting legitimate operations.

Despite the counterattack, Qubic recovered its hashing power and accumulated enough computational resources to control majority network operations. Current mining statistics confirm Qubic’s position as the top Monero mining pool.

Kraken’s deposit suspension aims to prevent potential losses from double-spending attacks while the network remains compromised.

Other exchanges may implement similar measures until normal mining distribution resumes.

A 51% attack allows attackers to spend the same coins multiple times by reversing confirmed transactions. Exchanges become primary targets in such attacks since they handle large transaction volumes and hold significant cryptocurrency reserves.

The Monero network’s proof-of-work consensus mechanism requires majority hashrate control to validate transactions. Qubic’s dominance theoretically gives it the power to reorganize blocks and censor transactions on the network.



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Kraken Pauses Monero Deposits After 51% Attack Claims
Crypto Trends

Kraken Pauses Monero Deposits After 51% Attack Claims

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Crypto exchange Kraken has paused deposits of Monero (XMR) after warning of a potential 51% attack on the privacy-focused blockchain. The exchange said withdrawals and trading remain open, and deposits will resume once the network is deemed safe.

A 51% attack occurs when one entity controls more than half of a blockchain’s computing power, enabling it to reorder transactions and potentially double-spend. Kraken said on Friday that a single mining pool had surpassed that threshold, posing a risk to network security.

The claim follows an announcement by Qubic, a layer-1 blockchain project with an AI focus that also operates a mining pool. On Monday, Qubic said it controlled the majority of Monero’s hashrate and had reorganized six blocks. The statement was met with skepticism from parts of the Monero community, which denied an ongoing attack.

Monero, the 29th largest cryptocurrency by market capitalization at about $6 billion, is one of the industry’s most prominent privacy-preserving protocols. News of the alleged attack has triggered concern across its community and raised questions about the security of proof-of-work chains with concentrated mining pools.

Qubic’s rise to majority control followed weeks of turbulence. Earlier this month, the pool fell to seventh place among Monero miners after suffering what was described as a distributed denial-of-service (DDoS) attack on August 4. 

The attack reduced its hashrate from 2.6 gigahashes per second to 0.8 GH/s, according to Sergey Ivancheglo, the blockchain developer who claimed responsibility for the takeover attempt.

The pool later recovered, regaining strength and eventually crossing the 50% mark. Qubic described the achievement as a turning point, noting the significance of a $300 million AI-focused blockchain pool overtaking a $6 billion privacy network.

For now, Kraken has said Monero deposits will stay suspended until the network is stable. The incident has intensified debate over the vulnerabilities of smaller proof-of-work ecosystems when a single mining pool accumulates excessive dominance.

Also Read: Turkish Exchange BtcTurk Hacked for $48M in Latest Crypto Exploit





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Pump.fun’s SOL deposits to Kraken eclipse $660 million
Crypto Trends

Pump.fun’s SOL deposits to Kraken eclipse $660 million

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Solana-based memecoin launchpad and trading platform Pump.fun’s total SOL deposits to Kraken amount to over $660 million: Is this a massive profit cash out or liquidity play?

According to on-chain data, Solana-based memecoin generator Pump.fun quietly moved 132,180 Solana (SOL), worth approximately $20.87 million, to Kraken on June 10, sparking speculation about its established pattern of revenue withdrawals to the centralized crypto exchange.

The latest transfer brings Pump.fun’s total SOL deposits to Kraken this year to 2,476,697 SOL, valued at $404.64 million. So far, the memecoin launchpad has deposited 3.62 million SOL (about $660.5 million) to Kraken at $182, and sold 264,373 SOL for 41.64 million USDC at $158, according to on-chain analytics platform Lookonchain.

With only 3,610 SOL, valued at approximately $570,000, left in its fee account as of press time, Pump.fun’s SOL holdings have dropped to a fraction of earlier levels. This points to either aggressive profit-taking or a strategic shift in capital allocation.

What’s fueling Pump.fun’s massive SOL deposits to Kraken?

The repeated large-scale SOL transfers suggest that Pump.fun is either cashing out significant profits or preparing liquidity in advance of its rumored $1 billion token sale. According to a June 3 report by Blockworks, the sale is expected to happen within two weeks at a $4 billion valuation, citing anonymous sources.

Pump.fun has yet to confirm or deny the token sale on its official channels. Community reactions have been mixed, with critics questioning how the launchpad would deploy the funds. DefiLlama developer 0xngmi implied that the sale might be unnecessary.

why does pump need to raise 1bn tho? how is it gonna invest that for growth if it already has made 675m and hasnt spent that either

what are they planning to do with 1bn?

— 0xngmi (@0xngmi) June 4, 2025

The developments follow a steep decline in Pump.fun’s monthly revenues. According to DefiLlama data, the Solana-based memecoin launchpad generated $46.6 million in revenue in May. This figure represents a 66 percent drop from January’s $137 million, underscoring a dwindle in peak activity.

The timing and scale of the SOL movements suggest that Pump.fun may be reevaluating its capital strategy in response to shifting market conditions and weakening revenue. Whether this indicates an aggressive selloff, a liquidity raise ahead of the rumored token launch, or a shift toward reinvestment remains unclear.





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