Kraken HTX Locks Accounts Amid 'Dust Attack' Sanctions Tactic

A recent wave of tiny cryptocurrency transfers to Kraken HTX accounts has triggered account freezes as part of standard compliance protocol.

The activity, dubbed a 'dust attack,' was linked to a wallet associated with a sanctioned rival firm. According to blockchain analytics firm Arkham Intelligence, nearly 12,000 small deposits were sent to exchange-linked addresses between August 17 and August 24, with most individual transfers worth only a few cents to a few dollars.

Kraken said it does not know who is behind the wave but believes the likely goal was for sanctioned funds to land in client accounts, triggering a full account lock and operational disruption for users. The exchange's compliance team mobilized quickly to restore access to affected accounts while continuing to hold the frozen funds.