Kraken Suspends Monero Deposits Following 51% Attack by Qubic

In a significant development for the cryptocurrency community, Kraken, one of the leading cryptocurrency exchanges, has temporarily halted Monero (XMR) deposits due to concerns over a 51% attack on the privacy-focused blockchain. The attack, reportedly orchestrated by Qubic—a project led by IOTA co-founder Sergey Ivancheglo—has raised alarms as the mining pool managed to seize control of over half of Monero's hashing power. This was achieved using a unique proof-of-work mechanism, posing serious risks to the network's integrity. Kraken's decision to suspend deposits underscores the gravity of the situation, as exchanges often take such measures to protect users and maintain trust in the ecosystem. The incident highlights the ongoing challenges faced by blockchain networks, particularly those prioritizing privacy, in maintaining decentralization and security. As of August 18, 2025, the cryptocurrency community is closely monitoring the situation, with many awaiting further updates from both Kraken and the Monero development team. This event serves as a reminder of the importance of robust security measures in the ever-evolving digital asset space.

Kraken Halts Monero Deposits Amid 51% Attack Concerns

Kraken, a leading cryptocurrency exchange, has suspended Monero (XMR) deposits following a 51% attack on the privacy-focused blockchain. The attack, orchestrated by Qubic—a project led by IOTA co-founder Sergey Ivancheglo—has seen the mining pool seize control of over half of Monero's hashing power using a unique proof-of-work mechanism.

The exchange cited network integrity risks as the primary reason for the temporary halt, though trading and withdrawals remain operational. Kraken emphasized that deposits will resume only when the situation stabilizes. Qubic's strategy involves converting half of its XMR mining profits into USDT to buy and burn its native QUBIC tokens, raising questions about the attack's long-term implications for Monero's security.

Bitcoin Price Extends Losses Amid Bearish Signals

Bitcoin's price continues to retreat, slipping below the $120,000 threshold and exhibiting bearish momentum. The cryptocurrency now faces critical support at $115,500 after breaking a key declining channel on the hourly chart. Market participants watch for a potential reversal if resistance NEAR $118,500 is decisively breached.

The recent decline follows Bitcoin's failure to sustain record highs near $124,000. Trading volume and technical indicators suggest weakening bullish conviction, with the 100-hour moving average now acting as dynamic resistance. A Fibonacci retracement level at 23.6% marks immediate overhead supply that must be overcome to restore upward momentum.