Kraken temporarily restricted customer accounts after receiving nearly 12,000 unsolicited micro-transfers from an HTX-linked wallet between August 17 and August 24, 2026. Kraken described the activity as a compliance-poisoning dust attack designed to spread sanctioned funds and disrupt operations. The incident coincided with the EU's transaction ban on HTX's Huobi Global S.A. taking effect on August 23. HTX denied initiating the transfers and is investigating the source.
Kraken account restrictions
- ▪Kraken temporarily restricted some customer accounts after receiving nearly 12,000 unsolicited cryptocurrency transfers between August 17 and August 24, 2026.
- ▪Kraken restored access to the restricted customer accounts after completing compliance reviews but continued to hold the unsolicited funds separately.
- ▪Kraken did not disclose the exact number of restricted customer accounts or the total value of the retained assets.
HTX-linked dust attack
- ▪Nearly 12,000 small cryptocurrency transfers, mostly worth between a few cents and several dollars, reached Kraken-linked addresses from a wallet associated with HTX.
- ▪Kraken characterized the activity as a dust attack or compliance poisoning intended to spread sanctioned funds and trigger automated compliance reviews.
- ▪Arkham Intelligence identified the sending wallet as connected to HTX based on addresses previously disclosed in HTX's proof-of-reserves reports.
EU sanctions against HTX
- ▪The European Union's transaction ban against HTX, identified in regulations as Huobi Global S.A., officially took effect on August 23, 2026.
- ▪HTX disputed the scope of the United Kingdom sanctions, arguing that Huobi Global S.A. is a legally separate entity from its main trading platform.
- ▪The United Kingdom designated Huobi Global S.A. under its Russia sanctions regime on May 26, 2026, imposing an asset freeze and payment restrictions.
HTX denial of involvement
- ▪HTX denied initiating the transfers, stating it absolutely did not engage in such behavior, and launched an investigation into the activity.
- ▪HTX announced on August 21, 2026, that it would begin rotating its withdrawal addresses and distributing hot-wallet funds across multiple wallets.
- ▪HTX suggested the transfers could stem from address-labeling errors, operational misunderstandings, malicious third-party actions, or affected users acting independently.
Unsolicited transfer compliance challenges
- ▪Unsolicited cryptocurrency transfers from HTX-linked wallets reportedly triggered similar compliance reviews and account restrictions at Binance and Coinbase prior to the Kraken incident.
- ▪Andy Zhou, CEO of BlockSec, characterized the practice of sending unsolicited funds from high-risk addresses as transaction-history poisoning.
- ▪Public blockchain protocols allow any sender to transmit tokens to a recipient's address without obtaining prior permission or approval from the recipient.
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