Kraken woos FTX victims with $50k fee-free trading incentive

Kraken is offering former FTX clients $50,000 in fee-free crypto trading incentives as part of its role in distributing funds following the collapse of the exchange.

Cryptocurrency

exchange Kraken is sweetening the deal for FTX victims in an effort to help them get back on their feet after the latter left hundreds of thousands of investors without billions in customer funds. New clients who select Kraken to receive their FTX payout will get trading fee credits, allowing them to buy up to $50,000 in crypto on Kraken Pro with no trading fees, the exchange said in a blog announcement on Jan. 9.

On top of that, clients will receive “up to $105 in Kraken trading fee credits,” based on the amount of funds they receive, which will be added to their accounts once the FTX distribution comes through, the exchange said.

FTX, which was once valued at $32 billion before its bankruptcy, has entered into agreements with Kraken and BitGo, another firm selected to help with the distribution of recovery funds.

The distribution process starts in January, with the first payouts expected within 60 days after the plans effective date. Separate dates for other claims will be announced later. FTX stressed that clients need to complete necessary steps, including know-your-customer checks, to start receiving their funds.

FTX filed for bankruptcy in November 2022, amid accusations of fraud and mismanagement involving both the exchange and its sister company, Alameda Research. Sam Bankman-Fried, the former CEO and founder, was sentenced to 25 years in prison for crimes including fraud and stealing user funds.