Kraken should change its name to "Error 520: Web server is returning an unknown error"
I am in the same boat. Bitstamp seems a good alternative for European citizens but a little more strict than Kraken for KYC. I have a friend who tested it after also getting tired of Kraken and it looks good. If it's just to sell and to receive SEPA transfer there is also Bitwala (based in Germany.)
Didn't Bitstamp have some kind of security breach in their system, or maybe I got it mixed up with another exchange?
Yes about 3 years ago, they had a security issue, they stopped all trading activities, deposits, etc until fixed. The bitcoins are stored in cold storage so they were not able to make more damages.
It was a small incident compared to Bitfinex hack and the ~100 000
BTC stolen