Kraken blocks account linked to FTX and Alameda

SNEAK PEEK

  • According to Kraken, certain funds that it “suspected to be involved with ‘fraud, carelessness, or misconduct relating to FTX” had access to their accounts frozen.
  • A few accounts belonging to the executives of the defunct FTX Group, Alameda Research, and those companies have been frozen by Kraken. After learning that an account on its platform was used in connection with unlawful transfers at FTX, Kraken got in touch with the police.
  • FTX filed for Chapter 11 bankruptcy. After Sam Bankman-Fried resigned as CEO of FTX Group, John Ray was chosen to replace him.

The FTX Group, Alameda Research, and its CEOs’ verified accounts on the Kraken cryptocurrency exchange platform have been seized.

According to Kraken other Kraken clients are not impacted.Full reserves are kept by Kraken.

Regarding a few accounts held by the insolvent FTX Group, Alameda Research, and their leaders, Kraken has spoken with law police. To safeguard their creditors, those accounts have been blocked.

Twitter users saw that the exchange’s wallets were being depleted after FTX filed for bankruptcy. The improper transactions were subsequently confirmed by Ray, the new CEO and chief restructuring officer of FTX.

Additionally, money was sent from Kraken to a wallet that had some of the stolen tokens, as observed by Twitter users. We know the identity of this user, Nick Percoco, Kraken’s chief security officer, tweeted a few hours later. He did point out that he was unable to openly divulge the user’s identity on social media.

The new FTX CEO was then cited by Miller as saying:

Unauthorized access to specific assets has happened, as is publicly known. We are collaborating with law enforcement and the appropriate regulators after having contact with them.