Kraken Freezes Accounts Owned by FTX and its Executives

United States crypto trading platform, Kraken has frozen accounts operated by beleaguered Bahamian crypto exchange FTX, its associate Alameda Research and their executives. This action followed the Chapter 11 bankruptcy which was filed in a U.S court by FTX after the world’s largest digital asset service provider Binance refused to progress with its plans to acquire FTX.

Kraken has been in talks with law enforcement agencies after it discovered that an account on its platform was used in connection to unauthorized transfers at the troubled FTX exchange.

Based on a tweet posted by Kraken Exchange, “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.”

In addition, the exchange “Other Kraken clients are not affected. Kraken maintains full reserves.”

Crypto Firms Publish Proof of Reserve

Since the implosion of FTX, the CEO of the exchange has received several backlashes from crypto players and regulators in different countries.

Kraken’s former CEO and founder Jesse Powell are among those who voiced their displeasure with SBF. As part of his criticism, Powell highlighted some red flags which he noticed with SBF, his exchange FTX and the impact of its fall on the global crypto industry.

Powell’s 14-tweets thread outlined several responsibilities on the part of investors, regulators, and all crypto exchanges.

The 9th tweet outlined the red flags,

“Red flags: acting like you know everything after showing up to the battle 8 years late, 9 figs buying political favor, being overeager to please DC, huge ego purchases, like 9-fig sports deals, being a “media darling”, seeking out puff pieces, EA virtue signaling, FTT.”

9/ Red flags:
* acting like you know everything after showing up to the battle 8 years late
* 9 figs buying political favor
* being overeager to please DC
* huge ego purchases, like 9-fig sports deals
* being a "media darling", seeking out puff pieces
* EA virtue signaling
* FTT

— Jesse Powell (@jespow) November 10, 2022

Powell did not fail to alert Kraken users that the exchange was not exposed to any of these troubled entities or the fall of the FTX token (FTT).

Kraken is currently preparing a Merkle tree proof of reserve to publicly assure users of the assets that it holds.  Similarly, Seychelles-based Huobi Global has published its asset transparency report on its reserves. As per the published statement, Huobi has up to $3.5 billion in its hot and cold wallets.