Kraken Exchange Temporarily Suspends Monero Deposits Amid Ongoing 51% Attack
As of 2025, the Kraken cryptocurrency exchange has announced a temporary pause on deposits for Monero (XMR), a cryptocurrency known for its focus on privacy and anonymity. This decision comes in response to a significant security concern: a 51% attack that is currently affecting the Monero blockchain. However, the exchange has clarified that withdrawals and trading for Monero will continue as normal, and deposits will be reinstated once it is deemed safe to do so.
A 51% attack occurs when a single mining pool gains control of more than 50% of a blockchain network’s total hashing power, thereby enabling the potential for double-spending and the reordering of transactions. The implications of such an attack are severe, as they undermine the integrity of the blockchain’s ledger. On Monday, Qubic, which is both a layer-1 AI-focused blockchain and mining pool, claimed to have achieved majority control over Monero’s hashrate and reportedly reorganized six blocks, an assertion that has been met with skepticism from the Monero community.
“After a month-long, high-stakes technical confrontation, Qubic reached 51% of Monero’s hashrate dominance, successfully reorganizing the blockchain,” stated spokespeople for Qubic on Tuesday.
Monero, currently ranked as the 29th largest cryptocurrency by market capitalization according to CoinMarketCap, is a key player in the blockchain space, particularly for users seeking privacy-preserving protocols. The recent developments have sent shockwaves through the Monero community, leading to a flurry of responses regarding the nature and implications of this attack.
Initially, Qubic faced resistance in its takeover attempt, falling to the protocol’s seventh-largest miner. Compounding their challenges, they encountered a denial of service (DDoS) attack on August 4, which significantly hampered their operations by flooding their system with fake traffic. This attack reduced Qubic’s hashing power from 2.6 gigahashes per second (GH/s) to a mere 0.8 GH/s, according to Sergey Ivancheglo, the individual who claimed responsibility for the 51% attack. Despite these setbacks, Qubic managed to recover its hashing power and ultimately regained control of the majority of Monero’s network.
The ongoing situation is being closely monitored by stakeholders in the cryptocurrency industry, as the takeover of a privacy-centric protocol valued at approximately $6 billion by a considerably smaller AI protocol, estimated at $300 million, represents a pivotal moment in the evolution of blockchain technology.
For further insights into the unfolding scenario and its ramifications, stay informed through credible sources such as Cointelegraph, which remains committed to delivering high-quality journalism across the crypto and blockchain sectors.
In conclusion, as of 2025, the Monero community faces significant challenges due to the ongoing 51% attack, prompting exchanges like Kraken to take precautionary measures. The situation underscores the need for vigilance and robust security protocols in the rapidly evolving cryptocurrency landscape.
