Kraken freezes FTX and Alameda accounts, provides evidence of reserves

On November 13, Krakenbörsen announced that it was in contact with law enforcement authorities regarding accounts held by the bankrupt FTX Group.

It added that it has frozen all accounts linked to FTX, Alameda and its directors to protect its creditors. Kraken said its customers are not affected, and the exchange has full reserves.

  • The exchange was ranked 19th in terms of volume over a 24 hour period, according to CoinGecko.

  • Several respondents to the tweet asked about Kraken’s reserves and reviews. The exchange responded with a link to a page that instructs users how to access the backup directory through their Kraken account.
  • It did not publish it directly, as Binance did last week. Kraken audits show that all individual accounts have been audited, and do not allow users to see the exchange’s total reserves.
  • Proof of Reserves (PoR) has become a hot topic in light of recent events. The exchanges are now trying to prove to their clients that they have enough funds to back up the assets on the platform.
  • Cryptocurrencies emerged from the 2008 financial crisis as banks lent money they didn’t need to high-risk borrowers. The collapse of the FTX, which offered highly leveraged trading in risky assets to largely inexperienced retail traders, looks painfully similar.
  • Last week, Oracle vendor Chainlink revealed its Proof of Reservation system. Chainlink PoR was launched in 2020 to allow DeFi platforms to provide firm evidence of what supports their assets.
  • Former Kraken CEO Jesse Powell criticized FTX founder Sam Bankman-Fried last week, saying there were too many red flags. These included the “big ego” of sports advertising, being so eager to donate and pleasing politicians, coming into the crypto industry 8 years too late and acting as if he knew everything.

After Kraken freezes FTX and Alameda accounts, it provides evidence of the reserves that first appeared on CryptoPotato.

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