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Crypto Exchange Kraken Freezes Accounts of FTX, Alameda Research and Their Executives CryptoBlog

Crypto exchange Kraken froze a handful of accounts held by bankrupt FTX group, Alameda Research and their executives. Kraken was in contact with law enforcement after discovering that an account on its platform was being used for unauthorized transfers at FTX.

Kraken freezes accounts belonging to FTX, Alameda Research and executives

Cryptocurrency exchange Kraken has taken action 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 spoke to law enforcement about a handful of accounts held by bankrupt FTX Group, Alameda Research and their executives. These accounts have been frozen to protect their creditors.

Kraken emphasized, “Other Kraken customers are not affected. Kraken maintains full reserves.

FTX filed for Chapter 11 bankruptcy Friday. John Ray has been named the new chief executive of FTX Group following the resignation of Sam Bankman-Fried.

Alleged FTX Hacker Uses Kraken

Follow FTX bankruptcy filingsTwitter users noticed that the exchange’s wallets were drained. Ray, the new CEO and Director of Restructuring of FTX, subsequently confirmed unauthorized transfers.

Twitter users also noticed that funds had been transferred from Kraken to a wallet used to hold some of the stolen tokens. Hours later, Nick Percoco, Kraken’s Chief Security Officer, tweeted, “We know the identity of this account.” However, he noted that he could not publicly reveal the user’s identity on social media.

FTX General Counsel Ryne Miller explained on Saturday, “Sequel to Chapter 11 bankruptcy filings — FTX US and FTX.com have taken precautionary measures to move all digital assets to cold storage. [The] the process was sped up tonight – to mitigate the damage when observing unauthorized transactions.

Miller then quoted FTX’s new CEO saying:

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

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

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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