Crypto exchange Kraken has temporarily suspended Monero (XMR) deposits after detecting a 51% attack on the privacy-focused blockchain. The breach occurred when Qubic, an AI-focused mining pool, gained over 50% of Monero's hashrate on August 16, enabling transaction censorship and chain reorganization of six blocks. Kraken stated the move was a security precaution due to risks to network integrity, though XMR trading and withdrawals remain operational.
Qubic claimed the takeover followed a month-long technical confrontation and a DDoS attack on August 4 that temporarily slashed its hashrate from 2.6 GH/s to 0.8 GH/s. Monero's price plummeted 13% immediately, wiping over $300 million from its market cap. This marks Monero's first major mining-power breach despite a 2024 flooding attack, echoing similar 51% vulnerabilities seen in Ethereum Classic.