Kraken temporarily restricted some customer accounts after nearly 12,000 small crypto transfers arrived from a wallet linked to HTX, raising concerns about possible sanctions exposure. The transactions occurred between Aug. 17 and Aug. 24.
According to Bloomberg, Kraken described the activity as a possible “dust attack” involving sanctioned funds. HTX denied sending the transfers and said it is investigating their source.
Kraken Flags Compliance Concerns
A Kraken spokesperson said the transfers appeared to be an attempt to distribute UK- and EU-sanctioned funds across other platforms and “discredit the broader industry.”
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Kraken said it could not identify the sender. Affected customers later regained access as the exchange continued reviewing the transactions. Blockchain analytics firm Arkham linked the wallet to HTX based on previously disclosed reserve addresses, though that does not establish that HTX controlled the wallet when the transfers were made.
HTX Faces Growing Scrutiny
Similar transfers reportedly led Binance to restrict some accounts earlier this month. In another case, 166 small USDT transfers were linked to about $4.2 million in frozen funds.
HTX later said it planned to rotate withdrawal addresses and spread hot-wallet funds across multiple wallets. The UK sanctioned Huobi Global SA in May, while the EU imposed sanctions on HTX-linked entities in July.
Related: Radhika Gupta Says ‘Don’t Buy Crypto in India’: Is Regulation the Bigger Risk?
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Source: https://coinedition.com/kraken-restricts-accounts-after-12000-transfers-from/
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