Kraken has suspended Monero (XMR) deposits after Qubic survived.

Qubic, an AI blockchain platform worth $300 million, reorganized six Monero blocks after surviving a Distributed Denial of Service (DDoS) attack.

Monero, known for its privacy and valued at $6 billion, faces security concerns due to the attack.

The Kraken platform, a major cryptocurrency exchange, has suspended Monero (XMR) deposits due to a serious security issue in the Monero network.

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A mining group called Qubic controlled more than half of the network's computing power, executing what is known as a 51% attack. This type of attack allows the controlling group to manipulate transactions, such as spending the same coins twice or rearranging the blockchain records.

Kraken announced on Friday that it has temporarily suspended deposits to maintain security, but users can still trade and withdraw Monero. Deposits will reopen once the network is secure.

This attack has shaken the Monero community, especially since it is a major cryptocurrency focused on privacy, ranking 29th by market value at around $6 billion, according to CoinMarketCap.

What happened with Qubic's takeover?

Qubic, a smaller blockchain platform focused on artificial intelligence with a market cap of $300 million, announced that it had taken over more than 50% of Monero's hash rate on Monday. It even reorganized six blocks on the blockchain. This means it rewrote part of the transaction record.

This is critical for a privacy coin like Monero, designed to keep transactions confidential and secure. Qubic described this moment as a 'pivotal moment' in the cryptocurrency world, pointing out how its smaller project outperformed a much larger project. But it was not an easy win.

On August 4, Qubic faced a Distributed Denial of Service (DDoS) attack, where fake traffic overwhelmed its system, causing the coin's hash rate to drop from 2.6 gigahashes per second to just 0.8.

Sergei Ivanchiglo, who claimed responsibility for the 51% attack, stated that Qubic has regained its strength and has taken over most of Monero's computing power.

Some Monero users argued that it wasn't a true attack, but Qubic is now the largest mining pool for Monero, according to MiningPoolStats.

This has sparked angry reactions in the Monero community. Some see this as a wake-up call about the risks of a single group controlling a large amount of blockchain power, especially for a coin concerned with privacy.

Monero is designed to hide the identities of the sender and receiver of funds, unlike more open blockchains like Bitcoin. However, it generally has less computing power compared to larger networks. This has sparked discussions on how to strengthen the Monero network against such attacks.