HTX-LINKED WALLETS FLOOD KRAKEN WITH TINY SANCTIONED TRANSFERS

A series of tiny cryptocurrency transfers from wallets linked to sanctioned exchange HTX has put Kraken's compliance controls to the test.

Roughly 12,000 micro-transfers worth a few cents to a few dollars reached addresses linked to Kraken between August 17 and 24, according to Arkham Intelligence.

Kraken's automated screening flagged the incoming funds as tied to UK- and EU-sanctioned wallets and froze the affected customer accounts.

The platform has since restored access for those customers, but the transferred funds themselves remain held.

Kraken spokesperson said that attackers 'likely expect that if sanctioned funds land in a client account, it triggers a full account lock.'