Accounts Linked to Alameda and FTX Have Been Disconnected by Kraken

The platform said that it keeps complete reserves while there has been no effect posed to the funds of the other customers. This alleviated the concerns that the company would experience some liquidity issues as a result of the cash freezing. The company noted in its tweet that it had spoken with the federal investigators regarding the situation of some accounts that were controlled by the now troubled Alameda Research, FTX Group, along with their officials. The case involved some accounts that the company tweeted about.

In addition to getting in touch with the authorities to freeze the accounts access for certain funds that were suspected to be linked to scams, misconduct, or stupidity on the part of FTX, a spokesperson for Kraken indicated that the company had fervently identified the recent developments related to the FTX estate. The spokeswoman clarified that the establishment will sort out each individual account on an individual basis, and that they might also pursue directions from the trustee or the Bankruptcy Court.

This freeze is seen following the announcement made by FTX on the 11th of this month that roughly 130 enterprises under FTX Group, including Alameda Research, had filed for bankruptcy in the United States. In addition, Sam Bankman-Fried has resigned from his position as CEO of FTX Group (the former CEO of the company). After that, there is said to have been an exploit carried out on FTX involving an account associated with Kraken.

Nick Percoco, chief security officer of Kraken, admitted on November 12 that he possessed the information relating to the hacker. Nick Percoco is referred to as "the hacker." After that, he gave an update in which he said that a statement would be made by FTX concerning the scenario as well as the usage of funds from their validated Kraken account in order to complete the transfer. He said this update was made. In light of the most recent chaos, it would appear that regulatory bodies are applying tough standards not only to FTX but also to the management of the exchange.

The Bahamian Financial Services Commission has denied giving the order for FTX to prioritize withdrawals for customers in the region.

In spite of the fact that FTX's headquarters are located in The Bahamas, the country's securities regulator has frozen the assets held by FTX Digital Markets, which is the currency's subsidiary that is established in The Bahamas, as well as any parties that are connected to it. After the entity declared being told by the regulators to do so, the Regulatory organization denied having instructed FTX to favor disbursements for customers based in the Bahamas on the 12th of this month. This came after the entity claimed it had been instructed to do so by the inspectors.