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Morning Edition · Wednesday, August 26, 2026Published at 1:49 AM EDT · New York
Kraken says 12,000 tiny transfers from HTX-linked wallets triggered its sanctions screening and locked customers out
The exchange restored access and kept the flagged funds frozen, while HTX rejected any suggestion that it sent the deposits.
Kraken restricted a set of customer accounts last week after roughly 12,000 microtransfers reached Kraken-linked addresses between August 17 and 24 from wallets connected to HTX, an exchange under United States sanctions. Most of the transf…
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Compliance Screening Becomes an Attack Surface
As exchanges automate sanctions screening against public ledgers, third parties keep weaponizing unsolicited transfers to freeze innocent accounts, forcing venues and regulators toward provenance-based rules and making compliance infrastructure itself a target.
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