HTX Denies Involvement in Crypto Transfers That Triggered Kraken Freeze

HTX, a cryptocurrency exchange backed by entrepreneur Justin Sun, has denied any involvement in a wave of small, unsolicited crypto transfers that triggered automatic compliance freezes at Kraken. An internal review found no evidence that HTX initiated these transfers, which involved tiny amounts of USDT and other tokens worth a few dollars or less sent to recipients who never requested them.

The frozen balance tied to the dispute stands at $4.2 million, according to HTX's disclosure. The exchange has been investigating the matter after users reported locked accounts and as the European Union prepared to enforce a transaction ban on the platform effective August 23.

Kraken's policy suggests that any fund traceable to HTX would get frozen at Kraken regardless of intent, which undercuts the idea that the freezes are proof of a targeted attack. The exchange has not publicly addressed the $4.2 million figure or confirmed how many accounts remain frozen.