Kraken Says Some Customers Lost Access After Tiny Transfers From HTX-Linked Wallets

Bloomberg reported that Kraken said some customers briefly lost access to their accounts after receiving tiny amounts of cryptocurrency from a wallet linked to sanctioned rival HTX. Kraken called the transfers a “dust attack” and said the activity may have been intended to trigger compliance reviews by spreading sanctioned funds across the platform. Data from Etherscan and Arkham Intelligence showed that between Aug. 17 and Aug. 24, the wallet sent nearly 12,000 small transfers to Kraken-related addresses. Most were worth only a few cents or a few dollars. Kraken said it has restored access for affected customers. The exchange also said it is continuing to withhold the sanctioned funds as required and is working with authorities to limit the impact. HTX denied initiating the transfers and said it is investigating. The company said possible explanations include source-identification errors or malicious activity by a third party.