Kraken Exchange freezes accounts related to FTX and Alameda Research
Cryptocurrency exchange Kraken has frozen accounts owned by FTX Group, Alameda Research and their executives after filing for Chapter 11 bankruptcy. Kraken says the accounts have been closed tape “to protect their creditors”, that it “maintains adequate reserves” and that other users’ funds remain untouched, potentially alleviating users’ fears that the exchange will face liquidity problems due to frozen funds. The decision was also made after an unknown hacker drained all the tokens worth $600 million (approximately Rs 4,885 crore) of the now-bankrupt exchange, part of which was transferred. via Kraken exchange.
“Kraken spoke to law enforcement about a number of accounts owned by the bankrupt FTX Corporation, Alameda Research, and their executives. Those accounts have been frozen to protect their creditors,” the exchange revealed on Twitter.
Kraken spoke to law enforcement about several accounts owned by the bankrupt FTX Corporation, Alameda Research, and their executives. Those accounts have been frozen to protect their creditors.
Other Kraken customers are not affected. Kraken maintains adequate reserves.
— Kraken exchange (@krakenfx) November 13, 2022
Jesse Powell, co-founder and CEO of Kraken, tweeted his thoughts about the situation, saying, “We let clowns ride under our banner while they sold us out for their own gain. We gave them the right to speak for us, but they didn’t get that privilege.”
He continued to vent his rage on Twitter, writing: “An exchange explosion of this magnitude is a gift to bitcoin haters around the world. It’s the excuse they’ve been waiting to get to. justifies any attacks they have kept in their back pockets.” “
The exchange was disclosure on November 10, although it holds 9,000 FTT tokens (currently worth around Rs 10.58 lakh) on the FTX exchange, it is not related or tied to Sam Bankman-Fried own Research Alamedaallegedly borrowed billions of dollars in customer funds from FTX to engage in leveraged trading.
Meanwhile, the US Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) reported launch probe into the FTX Group, which includes FTX.com, FTX US, Alameda Research and West Realm Shires Services. The investigation aims to uncover potential fraud cases. The Royal Bahamas Police Force and the Bahamas Securities Commission are Also investigating problem.