Kraken
Kraken is a United States cryptocurrency exchange founded by Jesse Powell in 2011 and open to the public since 2013, operated by Payward, Inc. It is one of the oldest exchanges still running under its original brand, with a reputation built on security and deep spot liquidity rather than aggressive marketing. It offers a simple app and a lower-fee professional interface, Kraken Pro.
Is Kraken safe and legit?
Kraken is a genuine, long-running exchange — live since 2013, which in this industry is itself a form of evidence, because most venues that were going to fail have failed by now. It has never lost customer funds to a cold-storage breach, publishes proof-of-reserves attestations so anyone can check that client balances are backed, and has a security team known for handling disclosures firmly (see the incident record below). “Legit” in the sense people usually mean — will it run off with your coins — has a strong track record behind the no.
As always with a custodial exchange, the exposure that remains is that Kraken holds the keys, and that your own account can be phished. Neither is unique to Kraken, but neither disappears because the company is reputable.
Kraken vs Coinbase, Binance and others
Against Coinbase, Kraken is generally cheaper to trade and aimed at a slightly more experienced user, while Coinbase wins on polish and mainstream familiarity. Against Binance, Kraken is smaller and more US-focused, trading Binance's enormous product range and liquidity for tighter regulatory standing in the United States. Against Robinhood or Gemini, Kraken offers real crypto withdrawals and a deeper professional toolset. This page is about what Kraken is and where it sits; a side-by-side fee and feature table is a separate question from the profile.
Kraken fees
Kraken splits into the simple Kraken app and Kraken Pro. The instant-buy path in the app is convenient but carries a higher effective cost; Kraken Pro uses a maker-taker schedule that starts around 0.25% maker / 0.40% taker for small volumes and falls with 30-day volume. Withdrawals carry the underlying network fee. For anything beyond an occasional buy, Kraken Pro is materially cheaper than the instant-buy button — the two share an account, so there is no reason not to use it.
Kraken vs Kraken Pro, and support
Kraken and Kraken Pro are not separate companies or separate logins — they are two interfaces onto one account. The app is built for buying and holding; Pro adds order types, charts and the maker-taker fee schedule. Support is handled through Kraken's in-app and web help centre and live chat; Kraken does not run a phone line that cold-calls customers, so a “Kraken support number” that phones you unprompted is a scam.
The Federal Reserve master account
Kraken has pursued a Federal Reserve master account through its bank, Kraken Financial (formerly Kraken Bank), a Wyoming special-purpose depository institution. A master account would let it settle directly with the Fed rather than through an intermediary bank. As of this writing the matter sits inside the broader legal fight over whether the Fed must grant such accounts to state-chartered crypto banks; it is a live regulatory story, not a settled fact, and we will update this section as it resolves.
Incident record
A zero-day flaw briefly let certain accounts inflate their balance without completing a deposit. A security firm (later self-identified as CertiK) exploited it for about $3M from Kraken's own treasury and initially refused to return the funds until Kraken estimated potential losses — which Kraken called extortion. No user funds were at risk. Kraken fixed the flaw, the funds were returned minus small fees, and Kraken distributed roughly $2.9M to users.
In our ratings
Where we score Kraken against its peers on open data. The number lives there, not here.
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Frequently asked
Is Kraken safe?+
Kraken has run since 2013 without a cold-storage breach, publishes proof-of-reserves attestations, and holds client assets 1:1. The residual risks are the ones common to every custodial exchange: it holds your keys, and your own account can be phished.
Is Kraken legit?+
Yes — it is one of the oldest cryptocurrency exchanges still operating under its original brand, run by Payward, Inc. in the United States, with a long track record and no history of losing customer funds to a breach.
What is the difference between Kraken and Kraken Pro?+
They are two interfaces on the same account, not separate services. The app is for simple buying and holding; Kraken Pro adds advanced order types and a cheaper maker-taker fee schedule. There is no downside to using Pro.
Did Kraken get hacked?+
In June 2024 a security firm exploited a balance-inflation bug for about $3M from Kraken's treasury and initially refused to return it. No user funds were at risk; Kraken fixed the flaw, recovered the funds minus small fees, and distributed about $2.9M to users.
What changed
- 2026-09-28Profile created: founding and entity facts, proof-of-reserves, fees, the Kraken vs Kraken Pro distinction, the Fed master-account story, and the June 2024 bug exploit with a confirmed-recovery verdict.