Kraken stops monero deposits in the middle of 51% attack on the blockchain

Crypto Exchange Kraken suspended the Monero (XMR) deposits after confirming that a single mining swimming pool has taken control of more than half of the hash network, which raised serious safety problems.

This decision follows reports that Qubic, a layer 1 blockchain and a mining pool focused on AI requests, claimed the responsibility for the attack earlier this week.

Qubic said he had reorganized six blocks on the Monero blockchain after exceeding 51% of the network hashrate, a threshold that allows a potentially coin minor and handle transaction orders.

Kraken freezes Monero’s deposits after the mining swimming pool enters 50% hashrate

Monero, the 29th largest cryptocurrency by market capitalization at around $ 6 billion, is one of the most used privacy protocols in the digital asset space.

“As a precaution of security, we took a monero deposit break after detecting that a single mining swimming pool earned more than 50% of the total hash breech,” Kraken said in a statement on Friday.

“This concentration of mining has a potential risk for the integrity of the network.”

The news of the attempt to take control has shaken its community, the developers and the defenders postponing the assertions that the network was successfully compromised.

Qubic alleged that the episode had followed a one month battle for control over the mining domination of Monero.

The swimming pool initially had trouble, falling back to the seventh largest on the network after a distributed denial of service (DDOS) on August 4, reduced its 2.6 gigahashs per second hashrate (GH / S) to only 0.8 GH / s. However, Qubic then restored his power and claimed the majority control.

“This event marks a pivotal moment in the cryptography industry,” said a Qubic spokesperson, stressing what they have submitted to the control of a confidentiality protocol of several billion dollars by a much smaller project focused on AI valued at around $ 300 million.

The confrontation highlights a long -standing vulnerability of evidence of evidence of work, in particular those which have a concentrated mining activity.

A 51% attack occurs when a part controls the majority of the power or the participation of a blockchain, allowing them to modify the history of the chain or block transactions.

The founder of Qubic, Sergey Ivancheglo, admitted that the strategy had been designed to monopolize the mining of Monero, finally rejecting the blocks of rival pools.

Monero developers contest the complaint of Qubic of 51% attack

While Qubic says that the event demonstrates that he has obtained full control of the network, the developers of Monero have pushed back.

Luke Parker, a main developer at Seraidex, argued that the six -block reorganization does not permanently prove a successful attack of 51%, only that an “opponent with a large amount of hatching was lucky”.

Others are not so disdainful. Zhong Chenming, co-founder of the Slowmist cybersecurity company, said that the attack “seems to have succeeded”, warning that Qubic’s pool could now, in theory, rewrite the blockchain and censor any transaction.

The confrontation began at the end of June, when Qubic announced that he was redirecting his model of evidence, generally used for AI -related tasks, towards the exploitation of Monero.

The XMR extracted would finance the redemptions and burns of quit tokens, creating a direct economic incentive to dominate the network.

The post Kraken interrupts Monero’s deposits in the middle of 51% attack on the blockchain appeared first on the cryptonews.

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