Kraken Hit with 'Dust Attack' Amid Compliance Checks

Kraken, a digital-assets exchange, recently encountered a 'dust attack' where tiny amounts of cryptocurrency were sent to some customers from a wallet linked to sanctioned rival HTX. The transfers were intended to disrupt or manipulate another crypto user by triggering compliance checks.

Kraken identified the apparent aim of these small, unwanted transfers as spreading sanctioned funds. This type of attack is known as a 'dust attack,' where tiny amounts are sent to users in an attempt to evade detection.

While Kraken did not provide further details on the specific numbers or dates involved, they confirmed that some customers were temporarily locked out of their accounts due to these transfers.