Crypto exchange Kraken put a temporary freeze on some user accounts after a wave of unusually small deposits hit its wallets. Between August 17 and 24, the exchange received around 12,000 transactions, mostly ranging from a few cents to a few bucks each. Kraken called the incident a 'dust attack.'

What Happened

Thousands of micropayments flooded Kraken’s addresses in a short time span. These kinds of spammy deposits make it harder to filter out legit transactions and can trigger automatic monitoring and account checks on the platform.

Why Kraken Called It a 'Dust Attack'

A 'dust attack' is when someone sends tiny amounts of crypto to a large number of addresses. Kraken believes the goal was to use a barrage of microtransactions to set off automated account reviews and disrupt normal exchange operations.

HTX Connection: Kraken’s Take

Arkham Intelligence analysts linked the senders of these transactions to HTX. According to Kraken, this was an attempt to scatter funds tied to sanctioned HTX across different platforms, while also trying to trigger compliance checks on Kraken’s side. During the incident, Kraken restricted access to a portion of accounts.

The exchange labeled the activity as an outside attempt to interfere with the platform using micropayments, and responded with protective measures for both the platform and its users.