Kraken temporarily restricted approximately 12,000 customer accounts after they received unsolicited small crypto transfers from wallets linked to sanctioned exchange HTX. The exchange has since restored access, describing the event as a “dust attack” that triggered compliance flags on innocent users. HTX denied official involvement, suggesting affected Kraken customers may have acted on their own after funds were frozen.
Kraken temporarily restricted some customer accounts after they received tiny crypto transfers from wallets linked to sanctioned exchange HTX. The exchange has since restored access to the affected accounts, but the incident shows how unsolicited deposits can disrupt sanctions checks and leave innocent users unable to access their funds.
Around 12,000 transfers reached Kraken-linked addresses between August 17 and 24, according to a report, with most worth between a few cents and several dollars. Kraken described the activity as a ‘dust attack’ coming from HTX-linked wallets, believing the transfers were done to spread funds that were sanctioned to other platforms and undermine confidence in their compliance systems.
A ‘dust attack’ normally involves sending small amounts of crypto to many addresses, and in this case, the transfers led to Kraken’s screening controls flagging some receiving accounts. Kraken restricted those flagged accounts briefly and investigated, later restoring access but continuing to freeze funds connected to the sanctioned wallets. The transfers came as European restrictions against HTX were taking effect, with the European Union’s ban on transactions involving the exchange beginning on August 23, while the United Kingdom had already sanctioned HTX in May.
HTX has rejected suggestions that the transfers were part of an official campaign. Days before the report, an HTX representative said the exchange had looked at its internal accounts and found no evidence that the company was responsible for those activities.
HTX instead suggested that some Kraken customers may have acted on their own after their funds were frozen. The representative claimed the exchange had found many affected users, including one case involving as much as $4.2 million. There was no evidence showing a link between those users and the 12,000 transfers, and the $4.2 million claim has not been confirmed independently.
HTX said it had created a group to collect complaints from Kraken customers but argued that any action taken by users should not be attributed to the platform, leaving the source of the transfers unresolved.
