Kraken Locks Accounts Amid HTX-Linked Dust Attack

Kraken, one of the largest cryptocurrency exchanges in the US, temporarily locked customer accounts after nearly 12,000 small cryptocurrency transfers from wallets linked to sanctioned exchange HTX reached Kraken-related addresses over eight days.

The transfers, most of which were worth only a few cents to several dollars, occurred between August 17 and August 24. Kraken described the activity as a possible 'dust attack', a tactic in which small amounts of cryptocurrency are sent to large numbers of addresses, potentially triggering compliance reviews or contaminating the transaction histories of unsuspecting recipients.

Kraken has since restored access to affected accounts, while continuing to hold funds it considers subject to sanctions. The exchange is investigating the transactions and working with authorities.