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Kraken Puts the Brakes on Monero
Kraken has paused Monero (XMR) deposits after spotting a 51% attack that rattled the privacy coin’s blockchain. Withdrawals and trading stay open, but deposits won’t resume until the network stabilizes.
What’s a 51% Attack?
A 51% attack happens when one mining pool controls over half of a blockchain’s computing power. With that grip, the pool can rewrite transactions or even double-spend coins. Kraken explained the pause was a security move after one pool took majority control of Monero’s hashrate.
Who’s Behind It?
The AI-focused blockchain Qubic claimed responsibility, saying it reorganized six blocks. That sent shockwaves through the Monero community, which largely denied the takeover.
Monero’s Position
Monero is a top privacy coin and ranks 29th in crypto market cap. News of one pool seizing control of its network has left many users questioning the future of privacy-first crypto.
The Power Struggle
Qubic faced resistance at first, even falling to the 7th-largest miner. It was also hit with a denial of service (DDoS) attack, which flooded it with fake traffic. Still, Qubic bounced back, regaining strength and eventually controlling most of Monero’s computing power.
Why This Matters
Qubic called it a historic moment: a $300M AI project overpowering a $6B privacy network. It’s a clash of two worlds—privacy and AI—now colliding inside crypto.
