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

Kraken is offering $50,000 in free crypto trading incentives to former FTX customers as part of its role in distributing funds following the exchange’s crash.

Cryptocurrency exchange Kraken is sweetening the deal to help FTX victims get back on their feet after hundreds of thousands of investors were left without billions of dollars in client funds. New customers who choose Kraken to receive FTX payments will receive transaction fee credits, allowing them to purchase up to $50,000 in crypto on Kraken Pro with no transaction fees, the exchange said in a Jan. 9 blog announcement.

On top of that, customers 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 occurs, the exchange said.

FTX, which was valued at $32 billion before going bankrupt, signed deals with Kraken and BitGo, another firm chosen to help distribute recovery funds.

The distribution process will begin in January and the first payments are expected to be made within 60 days of the plan going into effect. Separate dates for other requests will be announced later. FTX emphasized that customers must complete the necessary steps, including know your customer checks, to begin receiving their funds.

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