Kraken, a leading crypto exchange, has paused Monero (XMR) deposits after a confirmed 51% attack unsettled the network. The attack, launched by the Qubic mining pool, saw it briefly control over 50% of Monero’s hashrate—peaking at 2.6 GH/s—leading to a six‑block blockchain reorganization and orphaning approximately 60 blocks, effectively rewriting parts of the ledger. Kraken described the halt as a security precaution, with both trading and withdrawals remaining fully operational while the platform closely monitors the situation.
This incident highlights the vulnerability of proof-of-work (PoW) networks, especially mid-tier ones like Monero, to mining centralization. Analysts raised concerns around the risk of double-spending, block reordering, and the implications for network integrity. Following the disruption, Monero’s price dropped by up to 14%, reflecting heightened market sensitivity to security breaches in privacy-focused cryptocurrencies.
Though Qubic claims the move was intended to expose vulnerabilities rather than inflict harm, the Monero community’s muted response drew criticism for lacking transparency. The attack underscores the need for stronger decentralization, improved 51% attack defenses, and responsive crisis communication in blockchain ecosystems. Kraken will reinstate deposit services only once network security is restored.
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#XMR
#51PercentAttack
#QubicPool
#PoW
#CryptoSecurity
#PrivacyCoin
#NetworkIntegrity
#MiningCentralization
#BlockchainReorg
#CryptoExchange
