Kraken Suspends Monero Deposits After 51% Attack Compromises Network Integrity

Cryptocurrency exchange Kraken has temporarily halted Monero (XMR) deposits following a 51% attack that undermined the network's security. The attack, confirmed on August 12, 2025, allowed the Qubic mining pool to gain control of more than 50% of Monero's hashrate, reaching a peak of 2.6GH/s. This majority control enabled the attackers to execute a six-block chain reorganization, effectively erasing transactions and orphaning around 60 blocks. Monero, known for its strong privacy features that obscure transaction details, faced significant disruption due to this breach. Kraken's precautionary measure aims to protect users from potential double-spending or other malicious activities resulting from the attack. The incident highlights ongoing security challenges in proof-of-work blockchains, particularly for privacy-focused cryptocurrencies. Market analysts are closely monitoring the situation, as such attacks can impact investor confidence and network stability. Monero's development team is expected to release a post-mortem and potential mitigation strategies in the coming days.

Kraken Halts Monero Deposits Following 51% Attack

Cryptocurrency exchange Kraken has suspended Monero deposits after a 51% attack compromised the network's integrity. The breach, confirmed on August 12, saw the Qubic mining pool seize control of over half of Monero's hashrate, peaking at 2.6GH/s. This dominance enabled a six-block chain reorganization, erasing transactions and orphaning approximately 60 blocks.

Monero, a privacy-centric blockchain, obscures transaction details to ensure anonymity—a feature that has made it a favorite among users prioritizing financial confidentiality. The attack marks the first major breach of Monero's consensus mechanism, raising alarms about the vulnerabilities of mid-tier Proof-of-Work networks.

Kraken cited security concerns as the reason for the deposit freeze, noting the risks posed by concentrated mining power. Monero has faced prior disruptions, including a network-flooding incident in March 2024, but this attack underscores a graver threat: the fragility of decentralized systems when control falls into few hands.

Institutions Scoop $882M in ETH as Whale Activity Intensifies

Institutional demand for ethereum shows no signs of waning, with nearly $882 million in ETH acquired by two major entities. The purchases underscore growing confidence in Ethereum's role as a long-term store of value within institutional portfolios.

BitMine Immersion Technology led the charge, accumulating 106,485 ETH worth $470.5 million in a single ten-hour window. The public Bitcoin miner now holds 1.3 million ETH valued at $5.75 billion, cementing its position among the largest corporate holders globally. Transactions were executed via OTC desks including Galaxy Digital and FalconX to minimize market impact.

Meanwhile, an unidentified whale withdrew 92,899 ETH ($412 million) from Kraken over four days, signaling continued accumulation by large players. The movement follows a broader trend of institutions building strategic crypto positions through off-exchange channels.