On August 12, 2025, Monero's network was hit by a 51% attack from the Qubic mining pool, leading to a temporary suspension of XMR deposits by Kraken.
Incident Overview
The Qubic pool, associated with IOTA’s Sergey Ivancheglo, seized control using specialized methods, allowing them to rewrite Monero's blockchain and execute double-spending. The incident highlighted mining centralization vulnerabilities in the Monero network.
Economic Impact
The event caused Monero's price to drop over 10%, with XMR falling to about $247. Meanwhile, Bitcoin prices reached new heights, while privacy coins faced increased scrutiny over security, potentially shifting investment perceptions towards more secure options.
Previous Attacks and Future Outlook
Monero had previously faced attacks, including a network flooding incident in March 2024. However, this attack marked the first major compromise of its consensus protocol, emphasizing the need for reinforced network security. Analysts highlight that such breaches could lead to a push for more robust security protocols in privacy coins.
The attack on Monero raises important questions about security and centralization in cryptocurrency networks, likely leading to increased interest in improving decentralization in order to guard against future threats.
