Cryptocurrency exchange Kraken froze a handful of accounts belonging to the bankrupt FTX group, Alameda Research and their executives. Kraken was in contact with law enforcement after discovering that an account on his platform had been used in connection with unauthorized transfers to FTX.
Kraken blocks accounts belonging to FTX, Alameda Research and their executives.
Cryptocurrency exchange Kraken has taken steps to block verified accounts on its platform owned by FTX Group, Alameda Research and their executives. Kraken’s official Twitter account tweeted early Sunday morning:
Kraken spoke to law enforcement about a handful of accounts belonging to FTX Group, Alameda Research and their executives, all bankrupt. These accounts have been frozen to protect their creditors.
Kraken pointed out: “The other Kraken clients are not affected. Kraken maintains full reserves.“
FTX filed for Chapter 11 bankruptcy protection on Friday. John Ray was named the new CEO of FTX Group following the departure of Sam Bankman-Fried.
The suspected FTX hacker uses Kraken
After FTX filed for bankruptcy, users of Twitter noticed that the wallets of the exchange were emptied. Ray, FTX’s new CEO and Head of Restructuring, later confirmed the unauthorized transfers.
Twitter users also noted that the funds had been transferred from Kraken to a wallet used to hold some of the stolen tokens. Hours later, Nick Percoco, Kraken’s head of security, tweeted: “We know the identity of this account“. However, she noted that he could not publicly disclose the user’s identity on social media.
Ryne Miller, FTX general counsel, explained on Saturday: “After filing for bankruptcy, FTX US and FTX.com took precautionary measures to move all digital assets into cold storage. The process has been accelerated tonight, to mitigate the damage while observing unauthorized transactions.“
Ryne Miller then quoted the new FTX CEO as saying:
As has been widely reported, unauthorized access to certain resources has occurred … We have been in contact and are coordinating with relevant law enforcement and regulatory authorities.
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