June 3, 2023

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Kraken is one of the largest cryptocurrency exchange platforms operating out of the USA. The regulated cryptocurrency exchange has recently taken action to deal with the FTX debacle.

As per the latest reports, Kraken has frozen all the account activity that is related to FTX Group, Alameda Research, and its related executives.

It is worth noting that the FTX collapse has opened a worm of cans for the cryptocurrency community. Just about everyone has something to say on this topic.

However, the crypto bigwigs are busy trying to patch the incident to maintain stability within the community.

Last week, after continual denial of bankruptcy rumors, FTX, and its associate companies filed for a voluntary Chapter 11 bankruptcy proceeding.

Kraken Wants to Protect Investors

FTX was the second largest cryptocurrency exchange, second to only Binance in adoption and popularity. The decline of this exchange is a blow to the entire cryptocurrency community.

However, the collapse has also raised some important questions for cryptocurrency investors concerning transparency and the direction of regularity clarity.

Kraken exchange has recently stated to clear the matter of FTX account seizure. The regulated exchange has claimed that the step was taken to protect the interest of the users and to protect the rights of the creditors.

It is worth noting that in the past, some financial enterprises had come forward to sue FTX in the matter of debt recovery before they filed for bankruptcy protection.

There are some major red flags when it comes to the FTX collapse case. There are financial reports that FTX has granted big debts to its sister company Alameda Research. On the other hand, the company also held its capital in illiquid cryptocurrencies.

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On the other hand, there are also reports about the alleged collusion of FTX CEO with SEC Chairperson Gary Gensler.

In the middle of the chaos and panic surrounding FTX’s insolvency, the Telegram manager of FTX has confirmed reports of hack attacks.

Meanwhile, the media has also published reports about SBF transferring funds from the custodial accounts of FTX to cold storage. As per a former report, Kraken held around 9,000 FTT tokens following a rescue operation despite denying any exposure to Alameda Research.

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