FTX Approaches Kraken For Redemption, But Founder Underlines 'Red Flags'

Kraken, a US–based cryptocurrency exchange, is one among the rivals FTX reportedly reached out for financial help. It appears that Kraken's founder Jessie Powell is not up for the alleged "potential deal" as he saw some supposed 'red flags' in the sinking company.

The FTX debacle is a massive loss for the cryptocurrency industry, which has labored over the past year to establish its name as a reliable digital asset that allows people to buy, sell or trade them securely. Sam Bankman-Fried, the man behind the cryptocurrency trading company is now looking for his Hail Mary to somehow pull the company up from the ditch it is currently in. It is believed that he has reached out to Kraken for financial help.

However, in a Twitter thread, Powell implicitly implied that he is not signing any "potential deal" with FTX. The Kraken founder said he is now trying to control his rage and considered the FTX debacle as "a massive setback" in the crypto industry.

He encouraged the industry to "raise its standards" and said that what happened is not just about "aiming high and missing," but more. "Our good, trusting nature makes us easy targets for con artists. Some even tell us straight up that they're here for profits, not crypto, and we praise them for their honesty. Yet we're surprised when they turn out to be who they said they are. We need to raise our standards," Powell said in a tweet.

"This isn't about aiming high and missing. This is about recklessness, greed, self-interest, hubris, sociopathic behavior that causes a person to risk all the hard-won progress this industry has earned over a decade, for their own personal gain. While already being rich AF," he added.

Powell said the industry has allowed "clowns" who haven't earned the privilege, to join and give them "power to speak" for the entire industry. He also said the massive damage caused by FTX is a "gift to Bitcoin haters" all over the world.

"We let clowns ride under our banner while they sell us out for their own interests. We give them the power to speak for us but they haven't earned that privilege. When they blow themselves up, it's our house, our reputation, our people which bear the brunt of the damage," Powell said.

He also enumerated nine red flags which include, "acting like you know everything after showing up to the battle 8 years late, 9 figs buying political favor, being overeager to please DC, huge ego purchases, like 9-fig sports deals, being a 'media darling', seeking out puff pieces, EA virtue signaling and FTT."

Powell also asked the entire industry not to trust but to always verify. "Please, as an industry, we have to recognize the signs, believe people when they show/tell us who they are (the first time), shame them and shut them out. If we don't they'll take us down with them when they inevitably destroy themselves. Don't trust. Verify."