Incoming Kraken CEO states FTX and SBF are ‘complete frauds, thieves’

David Ripley, inbound CEO at cryptocurrency exchange Kraken, didn’t mince words when discussing Sam Bankman-Fried (SBF).

“I think, what it boils down to from all the information we have [and] this bankruptcy report that has now been released is that FTX and SBF are complete frauds—not just frauds, but thieves,” Ripley, who likewise functioned as COO at Kraken for over 6 years, informs Fortune.

Last week, it appeared cryptocurrency exchange Binance and its CEO Changpeng “CZ” Zhao had actually captivated the concept of assisting FTX. But after due diligence, Binance and CZ pulled out, mentioning problems at FTX that were “beyond our control or ability to help.”

Soon after, reports flowed that FTX approached Kraken as a possible partner, however Ripley keeps in mind that a rescue was never ever in the cards.

“We’re constantly getting more inbound acquisition inquiries than I myself can keep track of, but there was never any legitimate discussion on acquiring FTX at any point,” he stated. “It wouldn’t make sense for Kraken on a number of fronts.”

Ripley likewise preserves that Kraken doesn’t have any direct exposure to FTX, Digital Currency Group (DCG), or any entities connected to SBF.

Kraken is presently working together with police, Ripley stated, after somebody behind a series of “unauthorized transactions” moved cash from FTX to Kraken after FTX applied for insolvency. Kraken has said it knows the person’s identity however Ripley decreased to share.

Looking ahead, Ripley sees guarantee in central exchanges providing “proof of reserves,” which, in theory, would provide users openness about possessions and liabilities on exchanges utilized. This is something Kraken has actually provided for years, Ripley stated.

Ripley likewise sees self custody, or individual ownership of cryptocurrency, to be essential. “Self custody is on the rise,” he stated.

But, to Ripley, “the centralized exchanges are always going to have a role …. to build [a] bridge from the legacy traditional financial system, from fiat to crypto.”

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News and digital media editor, writer, and communications specialist. Passionate about social justice, equity, and wellness. Covering the news, viewing it differently.

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