Kraken has suspended accounts after detecting a "dust attack" involving small transactions linked to HTX, raising compliance concerns.
Kraken, the cryptocurrency exchange, has temporarily suspended services for certain users following a series of small transactions originating from wallets associated with HTX. This situation was highlighted in a report by Bloomberg.
Between August 17 and August 24, the exchange processed around 12,000 transactions, with amounts typically ranging from mere cents to a few dollars.
Describing the event as a "dust attack," Kraken suspects that the intent was to distribute funds from a sanctioned entity across various platforms to trigger automatic compliance checks on accounts.
"We do not know who is behind these attacks," a Kraken spokesperson stated.
The concern was that receiving funds from a sanctioned source could result in a complete suspension of accounts, which initially happened, leading to temporary restrictions on access. Although Kraken’s compliance team later reinstated access, the assets involved remain frozen. The exchange has also informed relevant authorities about the situation.
HTX Responds to Allegations
HTX has denied any involvement, asserting that an internal review revealed no connection between its official accounts and the small transfers. The exchange is investigating whether the wallet was mistakenly associated with HTX or if an external party executed the transactions.
"If you look closely at Moon's article, you can see where the issue lies... we immediately checked all internal accounts and found no official activity," stated HTX's representative on social media.
Sanctions against Huobi Global SA, HTX's former identity, were imposed by the UK on May 26, with the European Union following suit in July. The sanctions, which include HTX, became effective on August 23.
This incident echoes a similar event in 2022 when an unidentified individual distributed small amounts of ETH from addresses linked to Tornado Cash to prominent figures in the crypto sector, resulting in temporary suspensions by platforms like Aave.
