The cryptocurrency exchange Kraken has suspended Monero deposits due to a recent 51% attack on the cryptocurrency's network, enacted for user safety.
Reasons for the Suspension of Monero Deposits
Kraken explained that they halted Monero deposits as the network is under attack. The Qubic mining pool had control over more than 50% of the hash power, allowing it to reorganize six blocks and orphan nearly 60 blocks.
Detection of the Monero Attack
The issue was noticed by the blockchain security firm SlowMist, which identified an unusual reorganization of blocks. Charles Guillemet, CTO of Ledger, confirmed the 51% attack, warning that Qubic had been amassing its power for months.
Impact on the Network and Future
Given Monero's nature as a privacy coin, its features complicate tracking mining pools and preventing centralization. The cryptocurrency community has expressed frustration over the developers' silence during this incident.
The attack has raised difficult questions regarding the future of privacy coins. While Kraken has suspended deposits to safeguard users, the main challenge lies in how the community rebuilds trust and ensures the security of its blockchain moving forward.
