- Kraken paused Monero (XMR) deposits after a mining pool reached over 50% of the network’s hashing power.
- A mining pool named Qubic claimed control of the majority of Monero’s hashrate and reorganized six blocks.
- This incident raised security concerns, as a “51% attack” allows transaction manipulation on a blockchain.
- Monero is the 29th largest cryptocurrency by market capitalization, valued at approximately $6 billion.
- Qubic’s takeover followed a month-long technical confrontation and a major DDoS attack on its mining operation.
On Friday, Kraken temporarily suspended deposits of Monero (XMR) after detecting a potential security risk on the blockchain. The pause came as a single mining pool gained control of more than half of Monero’s total hashing power, raising concerns about the integrity of the network.
A “51% attack” occurs when one entity controls over 50% of a blockchain’s computing power, giving it the ability to alter or reverse transactions. In its official update, Kraken stated: “As a security precaution, we have paused Monero deposits after detecting that a single mining pool has gained more than 50% of the network’s total hashing power. This concentration of mining power poses a potential risk to network integrity.”
The mining pool involved, called Qubic, announced it had reached 51% of the hashrate after a prolonged technical dispute with other network participants. According to Qubic representatives, Qubic successfully reorganized six blocks, confirming its control. Some members of the Monero community denied that an actual attack occurred, but Qubic maintained its claim through a public statement on Tuesday. The group described the event as a significant moment, emphasizing the influence of a $300 million AI protocol on a $6 billion privacy network.
Earlier, Qubic faced an alleged denial of service (DDoS) attack that temporarily reduced its hashrate from 2.6 gigahashes per second (GH/s) to 0.8 GH/s, according to Sergey Ivancheglo, who took responsibility for the 51% attack. Despite this setback, Qubic managed to restore its computing power and maintain dominance.
According to CoinMarketCap, Monero remains one of the top privacy-focused cryptocurrencies, ranking 29th by market capitalization. Community members and observers continue to monitor developments as security concerns remain following these network events.
For more information, visit the official Kraken status page and further details from Qubic’s blog and MiningPoolStats.
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