Kraken Restricts Accounts Over 12,000 HTX-Linked Transfers
Kraken restored customer access after compliance reviews of small transfers but holds disputed funds; HTX denies initiating the activity.
Kraken temporarily restricted affected customer accounts after approximately 12,000 small transfers between August 17 and 24 triggered its anti-money laundering and sanctions systems. Most transfers amounted to only cents or a few dollars each.
The exchange later restored access to the accounts after completing reviews of the individual transactions. Kraken continues to hold the disputed funds separately because they may involve sanctioned entities under applicable requirements.
Blockchain analytics firm Arkham Intelligence linked the sending wallet to HTX. HTX stated that it did not initiate the transfers and is investigating possible misattribution or third-party activity. The identity and motive of the actual sender remain unresolved.
Kraken described the activity as designed to distribute sanctioned funds across unrelated accounts and trigger compliance checks. The exact number of affected accounts and the total value of held funds were not stated.