Incoming Kraken CEO David Ripley Blasts Jamie Dimon, Alleges Fraud at FTX

Max Reyes, Caroline Hyde and Ed Ludlow, Bloomberg News

The Kraken logo on a laptop computer arranged in Dobbs Ferry, New York, U.S., on Saturday, May 22, 2021. Elon Musk continued to toy with the price of Bitcoin Monday, taking to Twitter to indicate support for what he says is an effort by miners to make their operations greener. Photographer: Tiffany Hagler-Geard/Bloomberg , Bloomberg

(Bloomberg) -- The incoming chief executive officer of crypto exchange Kraken denounced Sam Bankman-Fried as a “fraudster” and laid into JPMorgan Chase & Co.’s Jamie Dimon for comments condemning crypto.

“We have information to know that fraud was committed there,” Kraken’s Dave Ripley said in an interview with Bloomberg Television on Tuesday, referring to Bankman-Fried’s now-bankrupt digital exchange. “It’s going to take time for regulatory bodies and government to come into the fold.”

Bankman-Fried, who has not been accused of any wrongdoing by authorities, has repeatedly denied trying to perpetrate a fraud while admitting to grievous managerial errors.

Ripley is set to replace Kraken co-founder Jesse Powell as the company’s top executive in the coming months.

Read more: Crypto Agitator Jesse Powell Steps Down as CEO of Kraken

Ripley said Dimon’s comments that virtual tokens are “pet rocks” indicated he lacked understanding of the technology underlying digital assets and of innovation more broadly. The investment banking CEO was “clearly wrong on all fronts” when it comes to blockchain technology, he added.

Ripley also indicated he expected the aftermath of FTX’s collapse to continue to weigh on the sector more broadly, even as he touted Kraken’s strengths.

“It’s clear there’s going to be more contagion from FTX,” Ripley said. “We’re not impacted by this contagion.” Kraken last month said it was laying off 30% of its workforce, or about 1,100 people.