Kraken monitors fix for delayed [ticker USDC] deposits on Ethereum

Kraken has implemented a fix for delayed UUSDC$0.9999▼0.01% deposits via Ethereum’s ERC-20 network and is monitoring the results, according to the exchange’s status page incident record. The affected service is Digital Currency Funding for UUSDC$0.9999▼0.01% on Ethereum.

The exchange’s own timestamps put 50 minutes between the start of investigation and a monitored fix. Kraken began investigating at 14:11 UTC on September 26, identified the issue at 14:50 UTC, and reported the fix implemented at 15:01 UTC — eleven minutes after identifying it. The status page read: “A fix has been implemented and we are monitoring the results.”

Withdrawals were not affected. Kraken’s first update stated: “We are investigating delays affecting Ethereum (ERC-20) deposits. Withdrawals are processing normally. We will provide further updates as they become available.” The exchange later added: “The issue has been identified and a fix is being implemented.”

In practical terms, that left traders exposed to timing risk: funds arriving via Ethereum’s ERC-20 route were subject to delays, while assets leaving the platform processed on a normal timeline — two directions of exchange funding running under different service conditions simultaneously. A deposit that hasn’t credited to an exchange account can’t be used there, though the status page doesn’t establish that any specific trade missed a deadline or quantify losses from the delay.

What the status page doesn’t say: the technical cause, the number of deposits affected, the total value held up, or how long monitoring continues before the incident is formally closed.

Separately — and this is a different category of problem — CryptoTimes.io reported that Kraken has frozen funds under sanctions-related risk controls, with known cases reaching as high as $4.2 million. One user, per that report, withdrew 24,509.24 UUSDT$0.9998▲0.00% from HTX to Kraken on July 20, 2026, and found the funds frozen without a stated reason.

HTX denied that any of its official accounts were behind address-poisoning activity. CryptoTimes.io quoted the exchange’s internal review position as finding no evidence its official accounts were responsible, and suggesting some individuals may have acted independently after seeing their Kraken deposits frozen.

The sanctions backdrop, as reported by CryptoTimes.io, provides dates: the UK’s Foreign, Commonwealth and Development Office designated Huobi Global S.A. on May 26, 2026; the EU Council adopted Regulation (EU) 2026/1848 on July 23, adding “HTX (HUOBI GLOBAL SA)” to Annex XLV, Part A, effective August 23; Binance announced on August 14 that it would stop processing transactions involving HTX and ten other listed crypto-asset service providers from August 23. None of that explains the ERC-20 processing delay.

The two situations share one thing: a trader can have a transfer initiated on-chain or an exchange withdrawal sent while the balance on the receiving side remains subject to exchange-side processing. The deposit incident and the frozen-funds cases are otherwise distinct — one is a technical delay, the other a risk-control decision.

As of the status page’s last entry: the fix is in place, withdrawals are normal, and monitoring is ongoing.