Kraken Locks Accounts Amid Sanctioned Wallet 'Dust Attack'

Crypto exchange Kraken recently faced disruption due to a 'dust attack' from a sanctioned wallet linked to HTX, formerly known as Huobi. Between August 17 and 24, 2026, nearly 12,000 tiny cryptocurrency deposits, typically valued at just a few cents to a couple of dollars, arrived from the HTX-linked wallet.

Kraken's compliance systems flagged these transfers due to their reported connection to wallets subject to United Kingdom and European Union restrictions. The platform temporarily locked certain customer accounts while its systems reviewed the incoming funds. Once reviews concluded, Kraken restored access for the affected users.

HTX has denied initiating the transfers and is investigating possible explanations, including misidentification of the originating wallet or activity by a third party. Blockchain analytics firms had linked the sending address to HTX based on public proof-of-reserves disclosures.