Kraken Temporarily Suspends Monero Deposits Over 51% Attack Fears

Cryptocurrency exchange Kraken has announced a temporary halt on Monero (XMR) deposits due to concerns about a potential 51% attack on the Monero blockchain. The decision comes after warnings surfaced that a single mining pool might have gained excessive control over the network's hash rate, raising security alarms. While XMR withdrawals and trading continue unaffected, deposits will remain paused until Kraken confirms the network's stability. A 51% attack occurs when an entity controls more than half of a blockchain's mining power, enabling them to double-spend coins or disrupt transactions. Monero, known for its strong privacy features, has historically been resilient to such attacks, making this development particularly noteworthy. Kraken's proactive measures highlight the exchange's commitment to safeguarding user assets amid evolving security threats in the crypto space. The situation underscores the importance of decentralized mining distribution and real-time network monitoring to prevent malicious takeovers. Market analysts are closely watching how this incident might impact Monero's reputation and adoption, especially among privacy-focused users. Kraken has assured users that updates will be provided as the situation develops, emphasizing transparency throughout the process.

Kraken Halts Monero Deposits Amid 51% Attack Concerns

Cryptocurrency exchange Kraken has temporarily suspended Monero (XMR) deposits following warnings of a potential 51% attack on the privacy-centric blockchain. While withdrawals and trading remain operational, deposits will only resume once network security is confirmed. A 51% attack, which allows an entity controlling over half of a blockchain's computing power to manipulate transactions, was flagged after a single mining pool reportedly crossed the critical threshold.

The allegations stem from Qubic, a layer-1 blockchain project with AI capabilities, which claimed dominance over Monero's hashrate and admitted to reorganizing six blocks. Monero's community has disputed these claims, sparking debates over the vulnerabilities of proof-of-work networks with concentrated mining power. As the 29th-largest cryptocurrency with a $6 billion market cap, Monero's reputation as a leading privacy protocol faces scrutiny amid the turmoil.

Qubic's abrupt rise to majority control follows a turbulent month, including a DDoS attack on August 4 that temporarily relegated its mining pool to seventh place. The incident underscores the fragility of decentralized networks when mining power becomes centralized—a cautionary tale for the broader crypto ecosystem.

Qubic Community Targets Dogecoin for 51% Attack Following Monero Takeover

The Qubic community, an AI-driven blockchain network, has voted overwhelmingly to target Dogecoin for its next 51% attack. This decision follows their recent successful takeover of the Monero network, where Qubic's mining pool gained majority control of the network's computing power. Over 300 votes were cast in favor of attacking Dogecoin, far surpassing other candidates like Zcash and Kaspa.

Sergey Ivancheglo, founder of Qubic, initiated the vote to select the next proof-of-work blockchain to target. The choice of Dogecoin, with its $35 billion market cap, underscores growing vulnerabilities in networks reliant on mining power. Kraken has already halted Monero deposits due to security risks following Qubic's attack on the network.

Qubic's 51% attack on Monero allowed the pool to reorganize six blocks on the blockchain after a month-long hash rate conflict. The MOVE has sent shockwaves through the crypto space, raising questions about the security of smaller proof-of-work chains.