Kraken Locks Customer Accounts in 12,000-Transfer Dust Attack
- Nearly 12,000 tiny HTX-linked transfers triggered compliance reviews at Kraken.
- Kraken restored affected accounts but continues holding disputed sanctioned funds.
- HTX denies responsibility, leaving the wallet attribution and sender unresolved.
Kraken temporarily restricted some customer accounts after nearly 12,000 tiny crypto transfers triggered compliance reviews across its platform.
The transfers occurred between August 17 and 24, with most transactions worth only cents or a few dollars.
Kraken said the activity appeared designed to distribute sanctioned funds across unrelated accounts and trigger compliance checks.
Kraken Restores Accounts After Compliance Reviews
Kraken temporarily locked affected accounts after its anti-money laundering and sanctions systems flagged the incoming transfers. However, the exchange later restored customer access after reviewing the transactions and determining the circumstances surrounding each account.
The exchange continues holding the disputed funds separately because they may involve sanctioned entities under applicable requirements. Meanwhile, Kraken is coordinating with relevant authorities while monitoring additional transfers.
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