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- Kraken, a U.S.-based crypto exchange who was among the first bitcoin exchanges to be listed on Bloomberg Terminal, has suspended the accounts linked with “FTX Group, Alameda Research, and their officials on its platform.
On November 13, Kraken clarified through his tweet that the accounts were suspended to safeguard their customers and further said that it keeps full reserves and the funds of other clients will not be impacted at all, probably looking to put an end to fears from users that the platform may experience liquidity problems due to the decision of fund freeze.
A spokesperson of that exchange has stated to the media that it had a word with law enforcement in concern with the accounts linked to FTX. Also, it had personally observed the activities with the FTX estate. He also claimed that the account access to certain accounts had been suspended concerning the fraudulent activity or misconduct associated with FTX.
“We will sort out every account one by one personally and may go to the Bankruptcy Court or trustee for a piece of advice wherever needed,” the spokesperson further said.
On November 11, FTX publicized that the company, along with its sister company Alameda Research had filed for Chapter 11 bankruptcy. Also, the chief executive officer, Sam Bankman-Fried, has resigned from his post. As a consequence, companies like Kraken and many others have planned to suspend account access concerning the public’s safety.
Also, there was a presumed hack on FTX in which a Kraken account was indulged. Regarding this hack, the CSO of the firm, Nick Percoco, stated that they very well know who is the owner of that account and further said that FTX will announce something about the situation and their using funds from their verified account to do this transaction.
Plaid also has suspended account access.
Not only Kraken but Plaid, a financial services company based in San Francisco, has also put a stay on the U.S.-based exchange’s access to its products, quoting “thinking about public reports” of scam activity.
As reported by the coin republic, On November 13, Plaid made a tweet through which the company announced that it had put a hold on the access of FTX to its products concerning the public reports of fraudulent activity. As per the tweet, it is very clear that FTX will now not be able to fetch any information on financial things through that platform.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
