Crypto exchange Kraken froze a good number of accounts belonging to the bankrupt FTX Group, Alameda Research, and many of their executives. Kraken is cooperating with law enforcement agencies after discovering that Kraken accounts had been used for unauthorized transfers at FTX.
The news tweeted from the official Twitter handle said early Sunday morning, “… 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 and also appointed a new CEO John Ray after Sam Bankman-Fried quit the job.
Parallel to the news of FTX’s bankruptcy filings, Twitter users noticed that the exchange’s wallets were being emptied. Ray, the new CEO also confirmed the news about unauthorized transfers. It was also reported that funds had since been moved from Kraken to a wallet holding some of the stolen tokens.
On November 10, co-founder and former CEO of Kraken, Jesse Powell, had blasted SBF, known in the crypto space as white knight, on Twitter. He said FTX’s failure is not the case of aiming high but missing. It’s a case of sociopathic behavior, self-interest, and greed that has hurt the “hard-won” progress of the industry over the year.
In a 14-tweet thread, Powell stated that SBF came on the crypto scene eight years after it began and acted as if he knew everything. He also mentioned the nine-figure sports sponsorship Meami HEAT deal as an “ego purchase”