Kraken took action after detecting a serious threat to the Monero blockchain. The exchange suspended Monero (XMR) deposits while keeping withdrawals and trading open.
Threats from Qubic
Kraken suspended Monero deposits after Qubic, a layer-1 blockchain, claimed control of over 50% of mining power for Monero. Kraken executives warned that this concentration could compromise network integrity and expose users to double-spending attacks. Such an attack may occur when one mining pool controls most of the network's computing power.
Monero Community Responds to the Situation
The Monero community reacted negatively to the news about Qubic. Monero developers disputed Qubic's claims, but investors grew uneasy. Luke Parker, lead developer at SeraiDEX, stated that the six-block reorganization only proves that an adversary with high hash power got lucky, and does not prove sustained control. The confrontation between Monero developers and Qubic has been building since late June.
Future of Monero and Kraken
The situation leaves Monero at a crossroads, as developers must decide how to address the risk of concentrated mining power before investor confidence erodes further. Kraken, for its part, positioned itself as a defense line for its users by quickly suspending deposits, which may have prevented losses and preserved trust. For now, Monero users can continue to trade and withdraw on Kraken.
This episode is more than a short-term disruption; it serves as a reminder of the ongoing challenges in blockchain security. As Qubic continues its actions, Monero must strengthen its defenses to avoid further attacks.
