Kraken freezes $4.2M over HTX-linked transfers, but who sent them?

The HTX-linked address-poisoning incident took place on 18th August. However, despite it being three days since, address-poisoning reports are still persistent. Kraken freezing user funds worth up to $4.2 million may be a step in the right direction though.

Especially if the exchange believes some users may have independently tried to protect or recover their assets.

Did HTX really initiate the scam?

The interesting plot twist about this whole scam is the uncertainty around the HTX connection. In fact, back on the 18th itself, HTX denied that its official platforms or testing programs initiated the unexplained deposits.

However, small USDT transfers from addresses that were supposed to link their Kraken accounts to HTX-related wallets have repeatedly been labeled “HTX.” Needless to say, this has led to concerns regarding the wallet’s actual ownership.

According to a HUOBI HTX representative’s statement, the exchange examined its internal records and discovered no evidence of any activity backing up these allegations.

It is possible and understandable that some users are taking measures voluntarily due to the impact on their fund security and rights.

What is the community doing?

Additionally, a Kraken user group has been created too. It will be used to unite affected users, gather data about frozen funds, and effectively pressure Kraken to address the problem.

It is also an effort towards differentiating users who are voluntarily relocating or safeguarding their funds from any official Huobi-led activity.

As it stands, the situation is delicate because the EU’s transaction ban was set for 23rd August. And, UK sanctions have already placed limitations on activities related to HTX.

Final Summary

• Despite allegations of address poisoning, HTX denied initiating the unexplained deposits.
• A Kraken user group has been created to effectively pressure the exchange to address the problem.