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Kraken says “dust attack” from sanctioned HTX wallet locked customers out

Kraken told Bitcoin Magazine the dusting activity involved about 12,000 transfers from an HTX-linked wallet, aimed at triggering compliance checks and account locks.

Reported · Written up by our desk · Market Structure

Kraken says some of its crypto exchange customers were locked out after the exchange received tiny amounts of cryptocurrency traced to a sanctioned HTX wallet, a situation described as a “dust attack,” according to Bitcoin Magazine. In its statement to Bitcoin Magazine, Kraken said the transfers were designed to spread sanctioned funds across many wallet addresses so they would be detected and used to trigger compliance checks, potentially leading to full account locks and operational disruption.

Bitcoin Magazine also reports that Bloomberg first raised the issue and that Arkham Intelligence identified the wallet as linked to HTX based on addresses the exchange previously disclosed as part of its proof of reserves. The outlet said Arkham reported 12,000 such transfers were sent from the wallet to addresses linked to Kraken between this month, and that Kraken added it is working with authorities to limit the attacks’ impact.

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