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Glossary

Dust Attacks

A crypto dust attack is a type of cyber attack that targets users of cryptocurrencies. The term "dust" in this context refers to a very small amount of cryptocurrency — often so small that it is almost negligible in value. In a dust attack, an attacker sends this tiny amount of dust to a large number of wallet addresses. The goal is not financial; the attacker is attempting to de-anonymize wallet owners by tracking the movement of those tiny amounts across the blockchain.

When a wallet holder receives dust and then spends it as part of a larger transaction, that dust becomes mixed with other funds. By analyzing the blockchain and following the trail of dust through subsequent transactions, the attacker can begin to link multiple wallet addresses together and potentially identify the real-world identity of the wallet owner. This is particularly concerning for users who value privacy, as it can reveal patterns of activity, spending behavior, and connections between addresses.

Protecting yourself against dust attacks involves being vigilant about small, unexpected deposits in your wallet. Many modern wallets allow you to mark dust as "unspendable" or "frozen" so that it is never included in future transactions, severing the tracking trail before it begins. For traders operating multiple wallets or dealing with large transaction volumes, awareness of dust attacks is an important part of maintaining operational security and financial privacy.