Crypto Exchange Kraken Freezes Accounts of FTX, Alameda Research, Their Managers – Exchange Bitcoin News

Crypto exchange Kraken has frozen a handful of accounts owned by the bankrupt FTX Group, Alameda Research, and their executives. Kraken has been in contact with the police after discovering that an account on the platform was used in connection with unauthorized transfers at FTX.

Kraken freezes accounts belonging to FTX, Alameda Research and managers

Cryptocurrency exchange Kraken has taken steps to freeze verified accounts on its platform belonging to FTX Group, Alameda Research and their executives. The official Kraken Twitter account tweeted early Sunday morning:

Kraken has spoken to law enforcement regarding a handful of accounts owned by the bankrupt FTX Group, Alameda Research and their executives. These accounts have been frozen to protect their creditors.

Kraken stressed: “Other Kraken clients are not affected. Kraken maintains full reserves.”

FTX filed for Chapter 11 bankruptcy on Friday. John Ray was appointed as the new CEO of FTX Group following the resignation of Sam Bankman-Fried.

Alleged FTX Hacker Uses Kraken

After FTX’s bankruptcies, Twitter users noticed that the exchange’s wallets were emptied. Ray, FTX’s new CEO and restructuring chief, then confirmed the unauthorized transfers.

Twitter users also noticed that funds were moved from Kraken to a wallet used to hold some of the stolen tokens. A few hours later, Nick Percoco, Kraken’s chief security officer, tweeted: “We know the identity of this account.” However, he noted that he could not reveal the user’s identity publicly on social media.

FTX General Counsel Ryne Miller explained Saturday: “Following the Chapter 11 bankruptcy filings – FTX US and FTX.com initiated precautionary measures to move all digital assets into cold storage. [The] the process was sped up tonight – to reduce damage from observing unauthorized transactions.”

Miller then quoted the new FTX CEO as saying:

As widely reported, unauthorized access to certain assets has occurred … We have been in contact with and are coordinating with law enforcement and relevant regulators.

What do you think about Kraken freezing the accounts of FTX, Alameda Research and their executives? Let us know in the comments section below.

Kevin Helms

A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.