Kraken Freezes Accounts Related to FTX and Alameda Research
Crypto exchange Kraken has frozen accounts held by FTX Group, Alameda Research, and its executives following their Chapter 11 bankruptcy filing. Kraken said the accounts were frozen “to protect their creditors”, that it “retains full funds” , and that the funds of other users are not affected, which may allay the fears of users that the exchange will face financial problems due to the suspension of the fund. The decision also comes after an anonymous hacker issued $600 million worth of tokens (roughly Rs. 4,885 crore), part of which was transferred through the Kraken exchange.
“Kraken has spoken to law enforcement regarding a number of accounts held by FTX Group, Alameda Research and its executives. Those accounts have been suspended to protect creditors,” the exchange said on Twitter.
Kraken spoke to law enforcement about a number of accounts held by FTX Group, Alameda Research and its executives. Those accounts are frozen to protect creditors.
Other Kraken clients are not affected. Kraken maintains full caches.
– Kraken Exchange (@krakenfx) November 13, 2022
Jesse Powell, founder and CEO of Kraken, tweeted his thoughts about the situation, saying, “We let the clowns ride under our flag while they sell through us for their own gain. We give them the power to speak for us, but they have not yet received that right.”
He continued to express his anger on Twitter, writing, “An exchange implosion of this magnitude is a gift to bitcoin haters around the world. It’s the excuse they’ve been waiting for to justify any attack they’ve had in their back pocket.”
The exchange was it was revealed on November 10, that, while it holds 9,000 FTT tokens (currently worth about Rs. 10.58 lakh) on the FTX exchange, it has no exposure or obligations to Sam Bankman-Fried owned Alameda Research, which allegedly lent billions of dollars to clients. funds from FTX to engage in dynamic trading.
Meanwhile, the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) have reportedly launched an investigation into the FTX Group, which includes FTX.com, FTX US, Alameda Research, and West Realm Shires Services. The investigation aims to uncover possible instances of fraud. The Royal Bahamas Police Force and the Bahamas Securities Commission are also investigating the matter.
