August 17, 2025
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Kraken Halts Monero Deposits After 51 Attack Disrupts Network4

Kraken Halts Monero Deposits After 51% Attack Disrupts Network

Kraken has paused Monero (XMR) deposits as a security precaution after detecting that a single mining pool gained more than 50% of Monero’s total hashrate, a condition enabling potential chain reorganizations and double-spend risks, while trading and withdrawals remain open pending safety assessment.

Kraken Halts Monero Deposits After 51 Attack Disrupts Network2

What happened

  • The Qubic mining pool claimed majority control over Monero’s hashrate and conducted a six-block chain reorganization, which reportedly orphaned around 60 blocks, indicating the practical impact of majority control on the network’s transaction history.

  • Kraken’s status update cited the concentration of hashing power as a risk to “network integrity,” prompting the exchange to suspend only deposits for now as monitoring continues.

  • Industry reporting describes the episode as an alleged or confirmed 51% attack tied to Qubic’s surge in hashrate, with Monero community figures disputing aspects of the claim even as observable reorgs were noted.

Kraken Halts Monero Deposits After 51 Attack Disrupts Network 1

Why it matters

  • A 51% attack lets the controlling entity reorder transactions and potentially double-spend, exploiting the longest-chain rule in proof-of-work systems, and has historically disrupted smaller or mid-tier PoW networks when hashrate centralizes.

  • Monero’s privacy-focused design does not prevent consensus-layer attacks; its RandomX algorithm aims to resist ASIC centralization, but concentrated pool dominance can still threaten liveness and settlement finality.

Kraken Halts Monero Deposits After 51 Attack Disrupts Network3

Current status and context

  • Kraken indicates XMR trading and withdrawals are still active, with deposits to resume when the network is deemed safe, aligning with standard exchange risk controls during consensus instability.

  • Coverage places the critical events in mid-August 2025, with Qubic’s hashrate share rising rapidly since late spring and peaking enough to execute a six-block reorg that rattled the market and community confidence.

Key details at a glance

  • Trigger: Single pool surpasses 50% of Monero hashrate.

  • Observed impact: Six-block reorg and ~60 orphaned blocks reported by multiple outlets.

  • Exchange action: Kraken pauses deposits; trading/withdrawals remain open.

  • Dispute: Monero community pushback on “attack” framing despite reorg observations.