Kraken is stepping up to assist former FTX clients by offering trading incentives as part of the fund distribution process following FTX’s collapse.
Eligible users who choose the crypto exchange to receive their payout will gain access to up to $50,000 in fee-free crypto trading on Kraken Pro, the platform announced in a blog post released on January 9.
Additionally, clients will receive bonus credits of up to $105, depending on the size of their recovered funds, to further offset trading fees. These credits will be available in their Kraken accounts once payouts are processed.
FTX, which filed for bankruptcy in November 2022 after being valued at $32 billion, has partnered with Kraken and BitGo to manage the recovery fund distribution. The process is set to begin in January, with the first payouts expected within 60 days of the plan’s effective date. However, recipients must complete steps like KYC verification to access their funds.
The fallout from FTX’s collapse left thousands of investors unable to recover billions in customer deposits. The exchange’s founder and former CEO, Sam Bankman-Fried, was sentenced to 25 years in prison for fraud and mismanagement.
Kraken’s initiative follows recent developments in the FTX recovery process, including the acquisition of FTX EU by Backpack, a cryptocurrency exchange founded by former Alameda Research and FTX employees. The deal, approved by both the FTX bankruptcy court and the Cyprus Securities and Exchange Commission (CySEC), allows Backpack to operate within the European Union.
In a blog post published on January 7, Backpack confirmed that the acquisition includes managing the distribution of funds to FTX EU customers as part of the court-sanctioned bankruptcy claims process. The exchange plans to reintroduce its European services in the first quarter of 2025, pending the reactivation of its operational license. The new entity will provide various crypto-derivative services, including perpetual futures. Further user onboarding and asset recovery details will be made available through its support channels.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
