Kraken freezes accounts linked to FTX and Alameda

The cryptocurrency exchange Kraken, at the request of law enforcement, blocked accounts belonging to the bankrupt FTX Group, including Alameda Research, and their executives.

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.

Other Kraken clients are not affected. Kraken maintains full reserves.

— Kraken Exchange (@krakenfx) November 13, 2022

Funds of other users were not affected.

The platform described the decision as “creditor protection”.

In a conversation with Cointelegraph representatives of the exchange said that the blocked funds could be linked to “fraud, negligence or improper conduct in FTX’s activities”.

On November 12, an unknown user used Kraken, among others, to withdraw $400 million from FTX wallets. The security chief of the latter, Nick Percoco, wrote that the identity of the user was known to the team.

“FTX will issue a statement regarding the situation”, the specialist promised.

Update: I’ve been told that @FTX_Official or @SBF_FTX will be making a public statement regarding the sweeping of the Tron wallet in question and them utilizing funds from their verified @krakenfx account to complete this transaction.

— Nick Percoco (@c7five) November 12, 2022

Earlier, on November 11, the FTX Group filed for bankruptcy under Chapter 11 of the U.S. bankruptcy code. Sam Bankman-Fried stepped down as CEO.

On the same day, Tether Limited blocked 46,370,701 USDT on the Tron blockchain belonging to FTX.

Earlier, Kraken said there were no dealings with Alameda Research.

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