Cryptocurrency exchange Kraken has suspended Monero (XMR) deposits after detecting a potential 51% network attack, marking the second major security incident for the privacy coin this month. The platform confirmed withdrawals and trading remain operational while deposits will resume after network stability returns.

Mining Pool Seizes Network Control

Qubic, an AI-focused blockchain project, claims to have achieved 【54%】 of Monero's total hashing power on August 15, enabling potential transaction reversals. The mining pool reported reorganizing six blocks during what it describes as a "historic takeover" of the $6 billion privacy network.

——This concentration of mining power fundamentally undermines blockchain's decentralized security model—— Kraken's security team stated in their alert. The exchange detected abnormal hashrate distribution through its proprietary monitoring systems before implementing deposit freezes.

Controversial Network Takeover

Blockchain analytics show Qubic's hashrate dominance followed a month-long power struggle, including a suspected DDoS attack that temporarily reduced its mining capacity by 【69%】 on August 4. MiningPoolStats data confirms the pool now controls majority network power despite Monero developers initially dismissing the threat.

The situation presents a paradox for privacy advocates—while Monero's technology obscures transaction details, its mining distribution remains publicly verifiable. This transparency allowed Kraken to identify the security risk before double-spend attacks occurred.

Industry-Wide Security Implications

As the 29th largest cryptocurrency, Monero's vulnerability highlights systemic risks for proof-of-work blockchains. Qubic representatives framed their takeover as demonstrating "the fragility of decentralized networks against determined attackers."

Interestingly, the incident coincides with growing regulatory scrutiny of privacy coins. South Korea's Financial Services Commission recently proposed banning anonymous cryptocurrency transactions, while the European Union considers similar measures.

Market data shows XMR prices dipped 【3.2%】 following Kraken's announcement, though trading volumes remain stable. The exchange hasn't specified when deposit functionality might resume, stating only that engineers are monitoring network conditions in real-time.

——Our priority is protecting client assets from chain reorganization risks—— a Kraken spokesperson told CoinTelegraph. The platform continues processing withdrawals to provide liquidity during the security incident.