Monero Suffers 51% Attack, Kraken Halts Deposits
Qubic mining pool gains control over Monero network, leading to Kraken deposit halt.
- Qubic mining pool gains majority Monero hash rate.
- Kraken halts XMR deposits, citing security threats.
- Event highlights vulnerabilities in cryptocurrency privacy networks.
On August 12, 2025, Monero’s network experienced a 51% attack by the Qubic mining pool, causing crypto exchange Kraken to suspend XMR deposits due to security concerns.
The attack highlights vulnerabilities in mining centralization, with immediate market responses including XMR price decline and increased scrutiny on privacy coins’ security.
Monero (XMR) experienced a successful 51% attack on August 12, 2025, led by the Qubic mining pool. Kraken, a cryptocurrency exchange, suspended XMR deposits following the attack, due to concerns over network integrity.
“With its current dominance, Qubic can rewrite the blockchain, enable double-spending, and censor any transaction.” — Charles Guillemet, Chief Technology Officer, Ledger.
Incident Overview
Qubic, associated with IOTA’s Sergey Ivancheglo, took control using a specialized method. This enabled them to rewrite Monero’s blockchain and execute double-spending. The attack highlighted mining centralization vulnerabilities in the Monero network.
Economic Impact
The incident caused Monero’s price to drop over 10%, with XMR falling to about $247. Bitcoin (BTC) reached new heights while privacy coins faced increased scrutiny, impacting market perceptions and possibly shifting investments towards more secure options.
No immediate changes in regulatory or funding policies were noted, though the attack raises considerations for future privacy-focused network governance. The privacy coin sector, however, might face increased pressure for better decentralization measures.
Previous Attacks and Future Outlook
Monero had experienced previous attacks, including a network flooding incident in March 2024. This attack, however, marked the first major compromise of its consensus protocol, emphasizing the need for reinforced network security.
Analysts highlight that such breaches could prompt shifts towards more robust security protocols in privacy coins. This attack underlines the importance of decentralization as a defense mechanism against future assaults on similar networks.
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