Kraken Restricts Accounts Amid Sanctions Concerns Over Small Crypto Transfers

Kraken temporarily restricted some customer accounts after nearly 12,000 small crypto transfers arrived from a wallet linked to HTX. The transactions occurred between Aug. 17 and Aug. 24, raising concerns about possible sanctions exposure.

A Kraken spokesperson described the activity as a possible 'dust attack' involving sanctioned funds. However, HTX denied sending the transfers and said it is investigating their source.

The exchange could not identify the sender of the transfers, which appeared to be an attempt to distribute UK- and EU-sanctioned funds across other platforms and 'discredit the broader industry.' Affected customers later regained access as the exchange continued reviewing the transactions.