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Friday, December 2, 2022

Incoming Kraken CEO says FTX and SBF are ‘full frauds, thieves’

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David Ripley, incoming CEO at cryptocurrency trade Kraken, didn’t mince phrases when talking about Sam Bankman-Fried (SBF).

“I believe, what it boils right down to from all the knowledge we’ve got [and] this chapter report that has now been launched is that FTX and SBF are full frauds—not simply frauds, however thieves,” Ripley, who additionally served as COO at Kraken for over six years, tells Fortune.

Final week, it appeared cryptocurrency trade Binance and its CEO Changpeng “CZ” Zhao had entertained the concept of serving to FTX. However after due diligence, Binance and CZ opted out, citing points at FTX that had been “past our management or means to assist.”

Quickly after, stories circulated that FTX approached Kraken as a possible accomplice, however Ripley notes {that a} rescue was by no means within the playing cards.

“We’re consistently getting extra inbound acquisition inquiries than I actually can maintain monitor of, however there was by no means any reliable dialogue on buying FTX at any level,” he stated. “It wouldn’t make sense for Kraken on quite a few fronts.”

Ripley additionally maintains that Kraken doesn’t have any publicity to FTX, Digital Foreign money Group (DCG), or any entities tied to SBF.

Kraken is at the moment cooperating with legislation enforcement, Ripley stated, after somebody behind a collection of “unauthorized transactions” moved cash from FTX to Kraken after FTX filed for chapter. Kraken has stated it is aware of the individual’s identification however Ripley declined to share.

Trying forward, Ripley sees promise in centralized exchanges issuing “proof of reserves,” which, in idea, would supply customers transparency about property and liabilities on exchanges used. That is one thing Kraken has carried out for years, Ripley stated.

Ripley additionally views self custody, or private possession of cryptocurrency, to be essential. “Self custody is on the rise,” he stated.

However, to Ripley, “the centralized exchanges are all the time going to have a task …. to construct [a] bridge from the legacy conventional monetary system, from fiat to crypto.”

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