Kraken Clients Hit in 'Dust Attack' as Sanctioned Funds Spread Across Platforms

Crypto exchange Kraken's clients were recently targeted in what is known as a 'dust attack', where small amounts of sanctioned digital coins are sent to numerous wallet addresses. The aim, according to Kraken, was to trigger compliance checks by spreading these funds onto other platforms.

The exchange stated that its customers received tiny amounts of sanctioned cryptocurrency from an HTX-owned wallet, which is linked to the Chinese exchange that was sanctioned in July for allegedly helping Russians evade sanctions. As a result, 12,000 transfers were made to Kraken addresses, causing some users to be briefly locked out of their accounts.

Kraken's compliance team quickly mobilized to restore access while continuing to hold the sanctioned funds as required. The exchange is working with authorities to prevent these attacks from having their intended impact.