Kraken's status page indicates that the exchange is investigating issues causing delays in ETH and ERC20 token withdrawals. The page does not specify the reason or provide a recovery time. It is unclear whether trading and other deposit channels are affected, as the announcement does not clarify.

This is a funding gateway incident, not a delisting. ETH and ERC20 tokens running on Ethereum share the same withdrawal outlet, so delays will simultaneously affect native ETH as well as stablecoins and project tokens issued in ERC20 form. Users see withdrawal queues, not balances marked as lost.

Kraken's funding component was already downgraded that day. The status page also noted delays in XDC network deposits and withdrawals, with an investigation starting at 09:31 UTC on October 6, and by 12:22 UTC, the issue was identified, and fixes were being implemented, stating that other deposit methods were normal. The two announcements were not combined under the same cause.

On September 18, Kraken investigated the Ethereum ERC20 funding gateway, which could cause withdrawal delays, while other deposit methods were normal, and the issue was resolved by 10:45 UTC that day. The affected list included Ethereum tokens like LINK, AAVE, and UNI, not just a single token.

On September 26 at 14:11 UTC, Kraken again investigated ERC20 deposit delays, specifically mentioning the USDC Ethereum channel, stating that withdrawals were normal. The issue was identified that day, and resolved by 09:31 UTC on the 28th, lasting about 43 hours. There was another Ethereum withdrawal delay on September 25, which was resolved that day.

Buyers are users waiting to withdraw ETH and ERC20 from the exchange, while sellers are Kraken's Ethereum funding gateway. This is an outflow channel incident, not a price event. Coins remain in the exchange, but on-chain transfers are slow, putting pressure on addresses needing urgent withdrawals, while internal trading and unaffected other networks are relatively unconstrained by this announcement. Similar announcements have occurred multiple times in the past three weeks, all first marked as investigations and then marked as resolved.

Source: Public Information