Following the massive hack that hit the FTX platform, the Kraken cryptocurrency exchange froze accounts with fraudulent activities related to FTX. Let’s go back to the facts.
Kraken freezes fraudulent FTX accounts
After its bankruptcy, the FTX group faced new complications : a hacker has taken hundreds of millions of dollars out of the platform.
After a few hours, Kraken’s security manager, Nick Percoco, took to Twitter to say that its teams know the identity of an account linked to the hack. The user allegedly attempted to steal funds from FTX by passing them through the Kraken exchange.
Consequently, Kraken has decided to freeze several accounts directly linked to the FTX group:
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
“Kraken has spoken to law enforcement regarding a handful of accounts belonging to FTX Group, Alameda Research and their executives, all of which are bankrupt. These accounts have been frozen to protect their creditors. Other Kraken clients are unaffected. Kraken keeps its reserves full. »
The consequences of Kraken’s maneuver are twofold : block the way to hackers who want to seize funds, while preventing FTX teams from using the assets.
In fact, according to a Kraken spokesperson, these blocks are all done manually:
“We will resolve each account on a case-by-case basis, and we may seek advice from the bankruptcy court or the attorney depending on the situation. »
In addition, Kraken brings in law enforcement investigating FTX in the process of blocking these accounts.
At the time of writing these lines, FTX is under investigation by the Bahamian police, as well as the United States Securities and Exchange Commission (SEC). The objective of this investigation is to know whether the firm has carried out criminal actions or not.
let’s remember that former FTX CEO Sam Bankman-Fried also under SEC investigation about jurisdiction over securities.
In other words, the American institution seeks to know whether or not Sam Bankman-Fried violated the laws concerning the financial markets.
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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