Crypto exchange Kraken freezes accounts associated with FTX and Alameda

By Clark

Kraken aforementioned it froze account access to sure funds “we suspect to be related to ‘fraud, negligence or misconduct’ associated with FTX.”

United-States-based cryptocurrency exchange Kraken has frozen the accounts related to “FTX cluster, Alameda analysis, and their executives,” on its exchange when participating with authorities.

In a Twitter post on November. 13, Kraken aforementioned the accounts were frozen “to shield their creditors” and else it “maintains full reserves” and different users’ funds aren’t affected, seemingly seeking to terminate fears from users that the exchange may face liquidity problems thanks to the fund freeze.

Kraken has spoken with enforcement concerning some of accounts closely-held by the bankrupt FTX cluster, Alameda analysis and their executives. Those accounts are frozen to guard their creditors.

Other Kraken shoppers don’t seem to be affected. Kraken maintains full reserves.

— Kraken Exchange (@krakenfx) November 13, 2022

A Kraken proponent told Cointelegraph that it had “actively monitored recent developments with the FTX estate” and “are involved with law enforcement” speech it froze account access to sure funds “we suspect to be related to ‘fraud, negligence or misconduct’ associated with FTX.”

“We will resolve every account on an individual basis and should request steerage from the Bankruptcy Court or trustee as applicable,” the proponent else.

Kraken’s account freeze came when crypto exchange FTX declared in November. 11 that FTX cluster consisting of roughly 130 corporations as well as its sister commerce firm Alameda analysis filed for Chapter 11 bankruptcy within the U.S. with its founder SAM Bankman-Fried resigning as CEO.

It additionally follows a suspected hack FTX that concerned a Kraken account, Kraken’s chief security officer Nick Percoco aforementioned on November.12 that they’re awake to the account owner’s identity associated later gave an update that FTX would build a press release concerning things “and them utilizing funds from their verified [Kraken] account to complete this group action.”

Regulators seem to be coming back down arduous on FTX and their executives amid the recent turmoil.

FTX is headquartered within the Commonwealth of the Bahamas and also the country’s securities regulator on November. ten froze the assets of FTX Digital Markets — the exchanges’ Bahamian subsidiary — and its “related parties.”

The Bahamian securities regulator in November. 12 denied instructing FTX to prioritize withdrawals of Bahamas-based users when the exchange declared in November. 11 that it absolutely was tutored by the country’s regulators to facilitate Bahamian withdrawals.

While FTX is currently beneath investigation by the Royal Commonwealth of the Bahamas force for doable criminal misconduct in line with a November. 13 report.


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