Kraken Issues Security Alert To Users Of Punycode-Like Scam Using Their Domain Names

    The Kraken exchange has not held down the most positive reputation lately, amid claims of lacking the liquidity they need for Bitcoin and other issues. Now, the company is warning users of their exchange about a scam that is falsely charging for token issuance and more. What should customers do to remain vigilant?

    • The Kraken exchange issued a warning to consumers about a scam that is using emails and domain names to steal users’ funds.
    • The exchange has been surrounded by drama and rumors about their alleged lack of liquidity.

    American cryptocurrency exchange Kraken has had a rather interesting relationship with the market, balancing between being an actual exchange and having a flawed system for liquidity. However, it seems to have found itself in more trouble, but not with Peter Brandt, like it has in the past. Instead, it appears that malicious actors are using Kraken as the scapegoat in a new scam.

    Yesterday, Bitcoin found itself above the $10,000 price level, but Kraken was busy reporting a new warning to their customers. The exchange, led by Jesse Powell, stated that there was a scam afoot, issuing a lookalike to Punycode. The scam was trying to use Kraken’s domain names and were sending out emails to perpetuate the scam.

    The Kraken exchange credited the diligence of customers as the reason for resolving the issue quickly. However, token teams started reporting scams to the exchange. To try and correct and stop the issue from continuing, the company encourage customers to check the headers of the emails that they were receiving, abstaining from clicking on email attachments. Furthermore, the exchange clarified that there are no listing fees for their platform, which shows that that the scam was going after issuers of the tokens on their exchange as well. From there, the hackers would channel the funds from “listing” to the bad actors.

    The warning to the Kraken exchange’s users was posted to their Twitter account directly.

    In the last few months, as Bitcoin has risen, the Kraken exchange has seen some challenges. In fact, the price of Bitcoin fluctuated substantially on the exchange, as opposed to the way that it behaved on other exchanges, leading the public to question Kraken’s actual liquidity.

    At the end of March, Brandt have Kraken an “F” as their grade, criticizing the inability to control price manipulation, which would ultimately lead to regulatory measures being imposed as a necessity. He brought up the decline of XBT contracts down to $8,000, even though the coin cost over $8,700 at that point.

    At the end of April, Bitcoin fell under $5,200 around the same time that the New York Attorney General released a report that detailed the issues around Bitfinex and Tether. However, Kraken reported a much more significant drop down to $4,500, though it ended up coming back up to $5,100. After this discrepancy , there were many proponents in the market that credited the difference to the “illiquid book” from the Kraken exchange, creating a major difference between the exchange and the rest of the market.

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    Krystle M
    Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

    [Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

    [Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


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