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

Must read

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH Richard Adrian · 20 mins ago · ...

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil Liam 'Akiba' Wright · 5 hours ago · 2...

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom Christian Nwobodo · 3 hours ago ·...

Upbit’s parent company Dunamu sees profit drop 76% in Q3

Upbit’s parent company Dunamu sees profit drop 76% in Q3 Soumen Datta · 6 hours ago · 1 min read...

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

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 law enforcement after discovering that an account on its platform was used in connection with unauthorized transfers at FTX.

Kraken Freezes Accounts Belonging to FTX, Alameda Research, and Executives

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

Kraken has spoken with law enforcement regarding a handful of accounts owned by the bankrupt FTX Group, Alameda Research and their executives. Those 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 Friday. John Ray was appointed the new chief executive of FTX Group after Sam Bankman-Fried stepped down.

Alleged FTX Hacker Uses Kraken

Following FTX’s bankruptcy filings, Twitter users noticed that the exchange’s wallets were being drained. Ray, FTX’s new CEO and chief restructuring officer, subsequently 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 steps to move all digital assets to cold storage. [The] process was expedited this evening — to mitigate damage upon 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 between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More articles

Latest article

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH

Bitfinex holds the highest amount of Tether(USDT) at 60%, exchange balances surpass ATH Richard Adrian · 20 mins ago · ...

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil

Gemini reveals $601M GUSD backing, 45+ licenses amid global exchange turmoil Liam 'Akiba' Wright · 5 hours ago · 2...

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom

CryptoSlate Wrapped Daily: Ethereum losses deflationary gains; Andre Cronje reveals how DeFi saved Fantom Christian Nwobodo · 3 hours ago ·...

Upbit’s parent company Dunamu sees profit drop 76% in Q3

Upbit’s parent company Dunamu sees profit drop 76% in Q3 Soumen Datta · 6 hours ago · 1 min read...

Research: Whales have been offloading Bitcoin since 2021

Research: Whales have been offloading Bitcoin since 2021 Zeynep Geylan · 6 hours ago · 2 min read ...