HTX-Linked Wallets Trigger Dust Attack on Kraken Accounts

Cryptocurrency exchange Kraken was hit by a 'dust attack' originating from wallets linked to HTX, which resulted in some customer accounts being briefly locked. The attackers sent over 12,000 small transfers to Kraken-related addresses between August 17 and 24, with most valued at a few cents to several dollars.

Kraken described the activity as an attempt to trigger its anti-money-laundering controls by placing sanctioned funds into customer accounts. However, the exchange said it has restored account access for affected users while continuing to freeze sanctioned funds in line with regulations.

HTX denied carrying out the transfers directly and is investigating the activity. Blockchain analytics firm Arkham Intelligence classifies the wallet as HTX-linked based on an address HTX disclosed during its proof-of-reserves process.