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Kraken Freezes FTX And Alameda-Related Accounts — And What's Going On In The Bahamas?

Kraken had frozen accounts connected to the FTX Group, Alameda Research and their executives after a discussion with authorities.

The U.S.-based crypto exchange stated these accounts were frozen to protect FTX creditors while it maintained full reserves and other users’ funds remained unaffected.

Also Read: Ethereum Co-Founder Vitalik Buterin Is Planning This Cryptocurrency Safeguard, Changpeng Zhao Tells Benzinga In Twitter Space

“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 stated on Twitter.

According to a Kraken representative, the company was actively monitoring recent developments with the FTX estate and in contact with law enforcement authorities.

The accounts were frozen as Kraken suspected that those persons were associated with fraud, negligence or misconduct related to FTX.

Kraken’s account suspension follows the crypto exchange FTX’s Nov. 11 announcement that the FTX Group, which comprises about 130 businesses including its sister trading company Alameda Research, has filed for Chapter 11 bankruptcy in the U.S., with its founder Sam Bankman-Fried stepping down as CEO.

Meanwhile, regulators seem to be cracking down hard on FTX and its management.

Regulators Hot On The Heels Of FTX

The Bahamas’ securities regulator on Nov. 10 seized the assets of FTX Digital Markets, the exchange’s Bahamian affiliate, and its “associated parties.”

FTX is headquartered in the Bahamas.

After the exchange claimed on Nov. 11 it had been told by the nation’s regulators to facilitate Bahamian withdrawals, the Bahamian securities authority on Nov. 12 denied giving FTX instructions to give Bahamas-based users’ withdrawals priority.

According to a Nov. 13 report, the Royal Bahamas Police Force is currently looking into FTX for potential criminal activity.

Next: Canaan Net Income Nosedives 88% As Bitcoin Mining Suffers On Heels Of FTX Crumble

Photo: Sergei Elagin via Shutterstock

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