Kraken temporarily locks accounts after nearly 12,000 tiny transfers

Kraken briefly locked some customer accounts after nearly 12,000 unsolicited transfers, each worth from a few cents to a few dollars, hit Kraken-linked addresses between Aug. 17 and Aug. 24. The exchange called the activity a dust attack designed to taint unrelated users with potentially sanctioned funds and trip sanctions screening. Arkham Intelligence labeled the sending wallets as tied to HTX; HTX said an internal review found no official accounts involved and is checking mislabeling or third-party control. Kraken restored access, is still freezing the flagged funds, and is working with authorities so the attack fails. The UK sanctioned HTX in May, and an EU trading ban listed in July took effect Aug. 23, during the transfer window.

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