Kraken Says ‘Dust Attack’ From Sanctioned HTX Wallet Locked Out Customers

Bitcoin Magazine

Kraken Says ‘Dust Attack’ From Sanctioned HTX Wallet Locked Out Customers

Crypto exchange Kraken clients were reportedly locked out of their accounts after receiving tiny amounts of sanctioned digital coins. 

In a statement to Bitcoin Magazine, Kraken said the coins were transferred in what is known as a “dust attack” — when small quantities of cryptocurrency is sent to numerous wallet addresses to track and de-anonymize them.

Kraken said the aim of the transactions was to trigger compliance checks by spreading sanctioned funds onto other platforms. Bloomberg first reported the news.

“We don’t know who is behind these attacks, but they likely expect that if sanctioned funds land in a client account, it triggers a full account lock, causing operational disruption for a large number of users,” a Kraken spokesperson said.

The spokesperson added that its customers were briefly locked out of their accounts but its “compliance team mobilized quickly to restore access while continuing to hold the sanctioned funds as required.”

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