Kraken Says ‘Dust Attack’ From Sanctioned HTX Wallet Locked Out Customers

Kraken reported that small "dust" transfers originating from a wallet tied to sanctioned HTX triggered automated screening and caused some customers to be temporarily locked out or have withdrawals blocked. The exchange said its sanctions and AML controls flagged the inbound dust and it restricted affected accounts while investigating. The incident shows that dusting from sanctioned sources can trip custodial compliance systems and disrupt legitimate users, highlighting an operational vulnerability and friction point in enforcing on-chain sanctions.