Kraken Halts Monero Deposits Following 51% Attack – Privacy Coin Under Fire

Kraken just slammed the brakes on Monero deposits—and the timing couldn’t be worse. A 51% attack rattled the privacy-focused coin, leaving traders scrambling. Here’s what went down.

### The Attack That Broke the Chain

Monero’s vaunted privacy tech couldn’t hide from this one. Attackers hijacked the majority of the network’s hash rate, rewriting transaction history like a bad Hollywood heist. Kraken’s response? Freeze frame.

### Exchanges Circle the Wagons

Kraken isn’t alone. Other platforms are eyeing exits—liquidity could dry up faster than a DeFi rug pull. Monero loyalists scream 'decentralization,' but markets hate uncertainty. Cue the sell-off.

### The Irony of ‘Private’ Meltdowns

Nothing draws attention like a crypto crisis. Regulators are already sharpening their pencils, muttering about ‘investor protection’—because nothing says safety like a 51% attack.

### Bottom Line: Trust, But Verify

Monero’s promise of anonymity just collided with cold, hard math. Kraken’s move? Prudent—or panic. Either way, it’s a wake-up call: even privacy coins can’t hide from their flaws. Bonus jab: At least the attackers didn’t need a Goldman Sachs alum to pull this off.

Kraken follows ‘security precaution’ with Monero

Monero is a privacy-focused coin designed to provide secure, anonymous, and untraceable transactions. Unlike transparent blockchains such as Bitcoin and Ethereum, Monero conceals the sender, receiver, and amount for every transaction, and is popular among users who value financial privacy and freedom.

Launched in April 2014, Monero has suffered previous security incidents, including a flooding attack in March 2024 that congested the network. However, the recent 51% attack is the first major breach of Monero’s consensus protocol, heightening community concern about mining concentration and network resilience. Kraken posted:

“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.”

Lack of official communications makes Monero look ‘weak’

Monero’s price has fallen by as much as 14%, with the episode reigniting concerns about the centralization of mining in privacy-centric cryptocurrencies and the market impact of such attacks.

While security analysts are still debating the degree to which the reorganization constituted a full 51% attack (some argue it was a stress test on Monero’s decentralization rather than a purely malicious assault), a lack of official communications are conspicuous by their absence, as privacy-centric Unstoppable Wallet posted:

“To be honest, we kind of deserve this…

Zero unified pushback, no official statements, outdated website, passive devs.

Meanwhile Qubic, despite not actually hitting 51%, are winning the info war simply by being loud.

Monero community looks weak.

It’s both pathetic.”

As exchanges like Kraken take protective action, the broader crypto community will need to reconsider the resilience strategies for networks with smaller mining populations, as regulators highlight the added risk of privacy coins in centralized trading environments.