Kraken: Freeze withdrawals of accounts belonging to FTX, Alameda, and their executives suspected of illegal activities

ChainCatcher message, regarding the FTX incident, Kraken announced that it is actively monitoring the latest developments related to FTX assets, maintaining contact with law enforcement, and prohibiting Kraken account access to certain funds suspected of being related to FTX "fraud, negligence, or misconduct." Kraken will handle the relevant accounts on a case-by-case basis and may seek appropriate guidance from the bankruptcy court or trustee.

Kraken pointed out that the above statement only involves a few accounts owned or controlled by the bankrupt FTX Group, Alameda Research, and its executives. Withdrawals from these accounts have been frozen to protect their creditors. Other Kraken customers are not affected. Kraken maintains sufficient reserves.

Earlier reports indicated that Kraken's Chief Security Officer stated on social media that the identities of users involved in the movement of FTX funds have been confirmed. The on-chain activity of addresses starting with 0x59a has raised questions. Previously, FTX and FTX US had aggregated large assets to this address. Crypto KOL Autism Capital commented, "It is highly likely that FTX insiders are trying to raise funds to escape. The wallet addresses of FTX and FTX US are now affected and mixed together. The amount currently affected is approximately $380 million." (source link)