Kraken restricts accounts linked to suspected $133 million EU crypto theft
Kraken restricts accounts tied to a suspected $133 million theft
Kraken, a cryptocurrency exchange, has restricted accounts it says are linked to a suspected theft of more than $133 million from an unidentified European Union entity. The exchange says it is working with law enforcement to support recovery efforts.
According to Cointelegraph, the total suspected loss rose after blockchain investigator ZachXBT reported another $27 million in withdrawals from centralized exchanges on Tuesday, on top of the $106 million he reported on Monday. He said some of the withdrawals happened after his initial disclosure. These figures are the investigator's reports, not confirmed losses.
Key points at a glance
- Kraken restricted the accounts in question and says it is working with law enforcement.
- ZachXBT reported an additional $27 million in withdrawals, raising the suspected total from $106 million to about $133 million.
- Bitquery reported the suspected stolen funds were withdrawn from accounts at Kraken, Crypto.com and OKX.
- Crypto.com says it blocked funds tied to the incident; OKX says it is looking into the matter.
- Only a small portion of the funds appears freezable so far, per Bitquery data.
What Kraken says about its role
Kraken told Cointelegraph the incident did not originate on its platform. "We've restricted the accounts in question and are working with law enforcement to support recovery efforts," the exchange said. It also said its security systems were not compromised, no customer accounts were taken over, and there is no ongoing risk to its customers.
How Crypto.com and OKX responded
Crypto.com told Cointelegraph it took "appropriate action to block any funds associated with this third-party incident" from moving through its platform, adding that its platform remains fully operational and all user funds are secure and accessible.
OKX acknowledged the request for comment and said it was looking into the matter. Bitquery, a blockchain data firm, reported that suspected stolen funds were withdrawn from accounts at all three exchanges.
What the on-chain data shows
Bitquery found that $62.98 million in stablecoins — tokens pegged to a currency like the US dollar — was converted into 27,553 Ether within roughly four hours. As of 13:47 UTC on Monday, about $78.3 million reportedly remained in wallets linked to the suspected attacker, while $30.5 million had moved out of the tracked addresses.
Only $3.74 million remained in USDC that issuer Circle could potentially freeze, and Tether had already frozen $1.1 million in USDT, according to Bitquery. ZachXBT said earlier that the attacker was swapping funds into Ether and Monero through instant exchanges and cross-chain bridges.
What is confirmed versus what is not
Confirmed by the exchanges themselves: Kraken restricted some accounts and says its systems and customer accounts were not compromised; Crypto.com says it blocked related funds; OKX says it is reviewing the reports.
Not confirmed: the identity of the victim, the exact loss amount, and who is responsible. ZachXBT's claim that a large Western European financial institution was exploited and that the incident is being covered up is his working theory, published on his Telegram channel. He also claimed the missing disclosure allowed more than $30 million to be laundered. These allegations remain unverified. He said the laundering patterns do not match those typically used by North Korea's Lazarus Group.
Why this matters
Exchanges restricting flagged accounts is one of the few practical ways stolen crypto can be slowed once it hits off-ramps, since on-chain transfers cannot be reversed. The Bitquery figures suggest most of the funds are currently outside easy reach of issuers who can freeze stablecoins, which is why the exchanges' cooperation with law enforcement is central to any recovery.
What happens next
Kraken says it is working with law enforcement on recovery efforts, and OKX says it is still looking into the reports. No announced timeline for further findings from either the exchanges or investigators appears in the current reporting.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.