Kraken Locks Accounts Amid 12,000 Tiny HTX-Linked Crypto Transfers

Kraken, a major cryptocurrency exchange, temporarily locked some customer accounts after nearly 12,000 tiny crypto transfers from a wallet linked to HTX triggered compliance checks. The transfers, which ranged from fractions of a cent to a few US dollars, were made between August 17 and 24.

The exchange described this activity as a 'dust attack' to obfuscate the sanctioned funds across multiple unrelated accounts; Kraken later enabled access while holding funds in isolation. It did not identify the sender.

HTX denied responsibility, declaring that it 'absolutely did not engage in such behavior', and is investigating whether the problem was caused by mapping problems, operational failures, or malicious behavior by third parties. The incident highlights the potential for dusting on a larger scale as a weapon of disruption: every small transfer creates pressure on centralized exchanges to see if the sanctioned entity is exposed.