Kraken Halts Monero Deposits Amid 51% Attack Concerns
Kraken Suspends Monero Deposits After 51% Attack
Crypto exchange Kraken has temporarily halted Monero (XMR) deposits due to a 51% attack on the privacy-focused blockchain. This attack compromises the network's security by allowing potential double-spending and transaction reordering.
A 51% attack occurs when a single mining pool controls over half of a blockchain's hashing power. This dominance enables manipulation of the blockchain. Kraken announced the deposit suspension on Friday:
“As a security precaution, we have paused Monero 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.”
Qubic, a layer-1 blockchain focusing on AI, claimed responsibility for controlling the majority of Monero’s hashrate on Monday and reorganizing six blocks. These claims have been met with skepticism from parts of the Monero community.
Monero is a prominent privacy coin and ranks as the 29th largest cryptocurrency by market capitalization, according to CoinMarketCap. The reported 51% attack has caused considerable concern within the Monero community.
Qubic Claims Hashrate Dominance
Qubic stated on Tuesday, “After a month-long, high-stakes technical confrontation, Qubic reached 51% of Monero's hashrate dominance, successfully reorganizing the blockchain.”
Qubic's initial takeover attempt faced resistance, dropping them to the seventh-largest miner. They were also reportedly hit with a denial-of-service (DDoS) attack on August 4.
A DDoS attack overwhelms a system with fake traffic, preventing legitimate access.
The DDoS attack initially reduced Qubic's hashrate significantly. However, the pool recovered and eventually secured a majority of the Monero network's computing power.
Qubic representatives stated, “This event marks a pivotal moment in the crypto industry,” highlighting the takeover of a significant privacy protocol by an AI-focused project.