Kraken restricts accounts after 12,000 small crypto transfers linked to sanctioned funds hit platform

Kraken temporarily restricted customer accounts after nearly 12,000 small unsolicited crypto transfers arrived between August 17 and 24. The transfers, described as a dust attack, appeared to spread sanctioned funds linked to wallets connected to HTX, an exchange recently sanctioned by the EU and UK. Kraken restored account access but isolated the disputed funds from customer balances. HTX denies involvement and is investigating, while other exchanges like Coinbase and Binance also reported similar transfers amid ongoing sanctions enforcement.