Kraken attracts FTX victims with a $50K fee-free trading incentive

Kraken, one of the leading cryptocurrency exchanges, is stepping up to help those impacted by the catastrophic collapse of FTX, offering a significant incentive to attract former FTX clients who were left stranded when the exchange went bankrupt. In a bold move to support these victims and rebuild their trust, Kraken is offering new clients up to $50,000 in fee-free crypto trading. This generous offer is available to individuals who opt to receive their FTX recovery payouts through Kraken. The fee-free trading incentive will apply to crypto transactions made on Kraken Pro, allowing users to buy or trade up to $50,000 worth of cryptocurrency without incurring any trading fees, which is a substantial benefit for traders looking to maximize their recovery from the devastating FTX incident.

In addition to this, Kraken is also offering supplementary trading fee credits, with the potential for clients to receive up to $105 in fee credits based on the amount of funds they recover from the FTX distribution. These credits will be automatically added to their Kraken accounts once the distribution process is completed and payouts are received. This initiative by Kraken is aimed at making the recovery process smoother for FTX victims, allowing them to get back into the market without having to worry about additional fees, providing a bit of relief as they try to rebuild their portfolios.

FTX, once a giant in the crypto exchange industry with a valuation of $32 billion, filed for bankruptcy in November 2022 after allegations of severe fraud, mismanagement, and criminal activities that led to the loss of billions in customer funds. The bankruptcy proceedings have been chaotic and lengthy, but Kraken, alongside BitGo, has been appointed to assist with the distribution of recovery funds to FTX clients. The process of distributing these funds began in January 2025, with the first payouts expected to reach users within 60 days of the recovery plan’s effective date. However, clients need to complete the required Know-Your-Customer (KYC) steps before they can begin receiving their funds.

The FTX debacle had a massive impact on the cryptocurrency community, as millions of customers were left in limbo when their funds were locked and inaccessible. The collapse was largely attributed to the alleged fraudulent activities of Sam Bankman-Fried, the CEO and founder of FTX, and his company Alameda Research. Bankman-Fried was later convicted of fraud and theft, receiving a 25-year prison sentence. In this turbulent landscape, Kraken’s gesture of offering a significant financial incentive serves as a much-needed lifeline for those affected by the scandal, and it shows the exchange’s commitment to supporting the broader crypto community in a time of crisis. The hope is that Kraken’s involvement will help many victims recover not only financially but also regain confidence in the crypto market as a whole.