Kraken Freezes Accounts Over HTX-Linked Dust Attack
Cryptocurrency exchange Kraken has been temporarily freezing accounts after a large volume of small cryptocurrency transfers were sent from a wallet linked to sanctioned exchange HTX.
The transfers, which took place between August 17 and 24, consisted of approximately 12,000 transactions with most amounts ranging from a few cents to a few dollars. The source wallet is believed to be linked to HTX, although the exchange has denied any involvement in the transfers.
Kraken views the series of transfers as a 'dust attack', where extremely small amounts of cryptocurrency are sent to numerous wallets with the intention of tracing or manipulating transaction history.
As a result of the transfers, Kraken's compliance systems were triggered, causing affected customer accounts to be frozen. The exchange is now working to restore access to these accounts while continuing to freeze funds determined to be subject to sanctions.