Kraken Freezes FTX and Alameda Linked Cryptocurrency Accounts!

Kraken froze accounts owned by FTX Group, Alameda Research and its executives after filing for Chapter 11 bankruptcy protection.

“FTX Accounts Frozen to Protect Creditors”

US-based giant cryptocurrency The exchange said in its statement today:

“Kraken spoke to law enforcement regarding a group of accounts belonging to the bankrupt FTX Group, Alameda Research and its executives.”

Kraken added that other clients’ funds were unaffected and “kept full reserves”:

“Kraken spoke to law enforcement regarding a group of accounts belonging to the bankrupt FTX Group, Alameda Research and its executives. These accounts were frozen to protect their creditors.

Other Kraken customers were unaffected. Kraken maintains its full reserves.”

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’s announcement comes after FTX and Alameda-related companies filed for Chapter 11 bankruptcy protection on Friday.

FTX previously applied for a potential bailout deal with Kraken, which claims not to have made any investments in Alameda Research but holds about 9,000 FTT tokens.

In its 23-page bankruptcy filing obtained by CNBC, FTX states that it has more than 100,000 creditors, between $10 billion and $50 billion in assets, and between $10 billion and $50 billion in liabilities.

By comparison, Lehman had more than $600 billion in assets, while Enron had $60 billion in assets.

Bankman-Fried also stated that he would like to appoint Stephen Neal as the firm’s new chairman of the board. However, a spokesperson later said that Neal did not accept the post.

*Not investment advice.