Crypto Exchange Kraken Announces Its Not Impacted By FTX News

Crypto Exchange Kraken Announces Its Not Impacted By FTX News

• Binance’s deal to purchase FTX fell through on November 9.
• Kraken announced it’s not affected by FTX’s new in any “material way.”
• The exchange did not list any FTT tokens on it.

On November 10, cryptocurrency exchange Kraken announced it was not affected by FTX’s current situation in “any material way.” After Binance shared that it will purchase the world’s third-largest crypto exchange, FTX, the deal collapsed 24 hours later.

According to Kraken, it had no exposure to FTX CEO and Founder, Sam Bankman-Fried’s trading firm Alameda Research which was unusually involved with the FTX exchange. Although Kraken stated that it owned 9,000 FTT tokens on the FTX exchange platform, Kraken emphasized,

We have not listed the FTT token on our spot or futures exchanges, and Kraken is not affected by the recent FTX news in any material way.

While the world’s leading crypto exchange, Binance wished to support FTX’s users with liquidity, after reviewing FTX’s structure and books, Binance reported that it will not be able to follow through with the purchase.

As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of https://t.co/FQ3MIG381f.

— Binance (@binance) November 9, 2022

In a tweet, Binance shared that “corporate due diligence”, mishandled customers, and alleged US agency investigations are primary reasons why the acquisition deal can’t be pursued further.

In addition, FTX’s loan commitments created concerns for the Binance team. Binance CEO, Changpeng Zhao tweeted that FTX “going down is not good for anyone in the industry,” and accounting for the current scenario, the customers are “severely shaken.”

In other news, over six million clients suffered connectivity issues across Kraken’s mobile and website services on November 9, due to potential high volatility and demand in the market. Two hours later, Kraken reported that the issues were identified and resolved after an investigation. Kraken has announced that trading is now fully operational.

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