The FTX crisis still affecting several crypto exchanges and their operations.
The Kraken crypto exchange froze account access to certain funds it suspects are linked to FTX's "fraud, negligence, or misconduct."
Kraken in the United States has frozen the accounts associated with "FTX Group, Alameda Research, and their executives" on its platform.
Kraken claimed in a Twitter post on Nov. 13 that the accounts were blocked "to protect their creditors" and that it "maintains full reserves" and other customers' funds aren't affected. The move came to allay user concerns that the exchange would experience liquidity challenges as a result of the fund freeze.
A Kraken spokesperson told local media outlets that the company has been actively monitoring recent developments with the FTX estate and is in contact with law enforcement. In addition, it has frozen account access to certain funds that it suspects are associated with 'fraud, negligence, or misconduct related to FTX.
The spokesperson added, "We will resolve each account on a case-by-case basis and may seek direction from the Bankruptcy Court or trustee as required."
Kraken's account freeze comes after crypto exchange FTX announced on November 11 that FTX Group, which includes sister trading firm Alameda Research, filed for Chapter 11 bankruptcy in the United States, with its founder Sam Bankman-Fried leaving as CEO.
It also comes in the wake of a suspected FTX hack involving a Kraken account. Kraken's chief security officer Nick Percoco stated on Nov.12 that they are aware of the account owner's identity and later provided an update that FTX would make a statement regarding the situation and that they would use funds from their verified [Kraken] account to complete this transaction.
In the aftermath of the recent crisis, regulators look to be cracking down hard on FTX and its management.
The Bahamas' securities regulator froze the assets of FTX Digital Markets, the exchanges' Bahamian affiliate, and its "associated parties" on November 10th.
On Nov. 12, the Bahamas' securities regulator denied asking FTX to prioritize withdrawals from Bahamas-based users, following the exchange's statement on Nov. 11 that it had been ordered by the country's regulators to facilitate Bahamian withdrawals.
According to a Nov. 13 report, FTX is currently investigated by the Royal Bahamas Police Force for alleged criminal activities.
Read also: To $9bn In Liabilities FTX has less than $1bn in cash