K

raken said in a tweet on Nov. 13 that the accounts were frozen to safeguard their creditors and that it maintains its normal reserves and other users' funds aren’t affected, likely to allay user concerns that the exchange might face liquidity issues as a result of the fund freeze.

A Kraken spokesperson told Cointelegraph that the exchange has constantly monitored the latest events with the FTX estate and is in contact with law enforcement, adding that it has frozen account access to such funds "we suspect to be associated with 'fraud, negligence, or misconduct related to FTX."

"We will settle each account on a case-by-case basis and, as necessary, seek assistance from the Bankruptcy Court or trustee," the spokesperson added.

The platform’s account freeze comes after FTX Group, which includes sister trading firm Alameda Research, filed for Chapter 11 bankruptcy in the United States on November 11, with founder Sam Bankman-Fried resigning as CEO.

It also comes in the wake of a suspected FTX hack involving a Kraken account. Chief security officer Nick Percoco stated on November 12 that they were aware of the account owner's identity and later provided an update that FTX would make a statement regarding the issue and them utilizing funds from their verified account to finish this transaction.

The Bahamas' securities regulator froze the assets of FTX Digital Markets, the exchanges' Bahamian subsidiary, and its relevant entities on November 10th.

On November 12, the Bahamas' securities regulator rejected instructing FTX to prioritize withdrawals from Bahamas-based users, following the exchange's statement on November 11 that it had been instructed by the country's regulators to enable Bahamian withdrawals.

According to a Nov. 13 report, FTX is now being investigated by the Royal Bahamas Police Force for potential criminal misconduct.

What do you think of the recent Kraken account freeze? Drop your comments by sharing this article on social media.

Posted 
Nov 14, 2022
 in 
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