Kraken Targeted by 'Dust Attack' Involving Nearly 12,000 HTX-Linked Transfers

Cryptocurrency exchange Kraken was hit by a 'dust attack' that involved nearly 12,000 small transfers from wallets associated with HTX, forcing the exchange to conduct compliance reviews and temporarily restrict some customer accounts.

The transactions occurred between August 17 and August 24 and were generally worth only a few cents to several dollars each. Kraken said the pattern appeared intended to distribute funds associated with sanctioned entities across other platforms.

HTX denies deliberately initiating the transactions, saying it is investigating whether the activity resulted from incorrect wallet attribution or malicious actions by a third party. The identity of whoever initiated the transfers therefore remains unresolved.

Kraken described the campaign as an attempt to spread U.K.- and European Union-sanctioned funds to other platforms and undermine trust across the cryptocurrency industry.