Kraken, a cryptocurrency exchange, has frozen a number of accounts belonging to Alameda Research and the bankrupt FTX Group. Kraken has been in touch with law enforcement following the discovery that an account on its platform had been used to facilitate unauthorized transfers to FTX.
Kraken Freezes Accounts belonging to FTX, Alameda Research and Executives
Kraken, a cryptocurrency exchange, has taken measures to freeze verified accounts on the platform belonging to FTX Group and Alameda Research as well as their executives. The official Twitter account of Kraken tweeted early Sunday morning
Kraken spoke with law enforcement about a few accounts that belonged to the bankrupt FTX Group and Alameda Research, as well as their executives. To protect their creditors, those accounts were frozen.
Kraken stressed: “Other Kraken clients are not affected. Kraken maintains full reserves.”
Friday, FTX filed for Chapter 11 bankruptcy. After Sam Bankman-Fried’s resignation, John Ray was named the new chief executive officer of FTX Group.
Kraken is used by an alleged hacker of FTX
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 had been transferred from Kraken into a wallet which held some of the stolen coins. 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 quoted then the new CEO of FTX 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 Kraken is doing to freeze the accounts of FTX, Alameda Research and their executives? Comment below.
Kevin, a student of Austrian Economics and evangelist since 2011, discovered Bitcoin. His interests include Bitcoin security, open-source software, network effects, and the intersection of cryptography and economics.
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