New Developments in Altcoin Hit by 51% Attack: One Exchange Suspends Deposits

The Monero ($XMR) network suffered a serious security concern last week when a mining pool took over 50% of the network’s total processing power (hashrate).

The incident led cryptocurrency exchange Kraken to temporarily halt $XMR investments.

Kraken said in a statement, “We have detected a mining pool controlling more than 50% of the total processing power of the Monero network. This poses a potential risk to the integrity of the network. Trading will be reopened once we are confident it is secure.” The exchange noted that $XMR trading and withdrawals are continuing as normal.

At the center of the incident is the Qubic mining pool, which is affiliated with IOTA co-founder Sergey Ivancheglo. Qubic briefly surpassed the 51% hashrate threshold on the Monero network, threatening its decentralized nature. However, the pool's share of the network has since declined to 35%, according to MiningPoolStats.

This development has reignited discussions about decentralization and security within the Monero community. Experts believe 51% attacks remain one of the most critical vulnerabilities in blockchain networks, and are particularly relevant for networks like privacy-focused Monero.

*This is not investment advice.