Kraken hit by 12,000 dust transfers linked to sanctioned HTX wallets

Kraken recently experienced a coordinated “dust attack” involving approximately 12,000 unsolicited micro-transfers sent to customer-linked addresses between August 17 and August 24, 2026. Most of these transfers were valued at only a few cents or dollars.

Arkham Intelligence identified the sending wallet as being linked to the exchange HTX. Kraken characterized the incident as an attempt to spread UK- and EU-sanctioned funds to trigger automated compliance reviews and cause operational disruption. Consequently, Kraken temporarily restricted several customer accounts to conduct necessary reviews. While access to these accounts has since been restored, Kraken is continuing to hold the disputed funds separately due to their connection to flagged wallets.

HTX has denied initiating the transfers, stating it is investigating whether the wallet was misattributed or if the activity was the work of a malicious third party. The incident highlights a growing vulnerability in cryptocurrency exchange infrastructure, where automated sanctions-screening systems can be exploited by sending tiny amounts of prohibited assets to unsuspecting users to force account freezes.