Kraken Suspends Monero Deposits Amid Attack Concerns

Kraken Halts Monero Deposits Following 51% Attack Allegations

Kraken, a major cryptocurrency exchange, has temporarily suspended Monero (XMR) deposits due to concerns over a potential 51% attack on the Monero network. The exchange stated that this measure is to safeguard user funds.

While deposits are paused, Monero trading and withdrawals remain fully operational. Kraken is closely monitoring the situation and will reinstate deposit services once network stability is confirmed.

Disputed Attack Claims

The concerns stem from claims made by Qubic, an AI-based crypto protocol, which asserted it had gained a majority of Monero's hashing power. A 51% attack allows the attacker to potentially double-spend coins and manipulate recent transactions.

Qubic claimed to have reorganized six blocks and mined a significant portion of the network's blocks during a two-hour window. However, these claims have been met with skepticism and a DDoS attack from the Monero community.

Monero's Resilience

Critics argue that Qubic's hashrate never exceeded 35% of the network. Sergey Ivancheglo, founder of Qubic, maintains that the incident underscores the need to prevent any single miner from controlling more than 25% of the total hashrate.

Despite the controversy, Monero's market performance has been surprisingly robust. XMR price rallied by over 10% following the attack claims, recovering to approximately $264. This suggests investor confidence and potential recovery in market momentum.

Monero is known for its privacy features that obscure transaction details, making it a popular choice for users seeking secure and untraceable transfers. For platforms handling privacy tokens, like Monero, it's important to have robust security measures in place. Codeum offers blockchain security audits that can help identify vulnerabilities and safeguard user funds.