Kraken Suspends Monero Deposits After 51% Attack Linked to Qubic Pool

Crypto exchange Kraken has suspended deposits of Monero (XMR) after the network suffered a confirmed 51% attack on August 12, raising fresh concerns over the security of mid-sized Proof-of-Work blockchains.

According to network data, the Qubic mining pool briefly controlled more than half of Monero’s hashrate, peaking at 2.6GH/s. This majority dominance enabled Qubic to reorganize Monero’s blockchain six blocks deep, effectively rewriting transaction history and orphaning approximately 60 blocks.

Kraken steps in as a precaution

Kraken said in a statement that Monero deposits had been paused as a security measure:
“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.”

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Privacy coin under pressure

Monero, launched in 2014, is known for its strong privacy features. Unlike Bitcoin and Ethereum, Monero conceals the sender, receiver, and transaction amounts, making it a preferred choice for users seeking anonymity. While these features drive adoption among privacy advocates, the network’s smaller hashrate compared to top-tier blockchains has long left it vulnerable to majority attacks.
The recent exploit underscores these risks, highlighting how concentrated mining pools can temporarily undermine the integrity of privacy-focused networks.