Crypto Opinions & News Crypto Exchange Kraken reportedly Hunted By the Feds

[upnorth]

Content source

https://www.theregister.com/2022/07/26/us_government_kraken/

The US government is reportedly investigating Kraken, a massive cryptocurrency exchange suspected of violating sanctions against Iran, and is expected to slap the crypto behemoth with a fine in the near future.

The Treasury Department's Office of Foreign Assets Control has been probing the US crypto exchange since 2019, according to the New York Times, which broke the story on Tuesday. "The Treasury does not confirm or comment on potential or ongoing investigations. We remain committed to using all of our tools and authorities to enforce the sanctions that protect US national security," The Register was told by Uncle Sam.

US sanctions against Iran prohibit any exports to the Mid-East nation. Allowing users in Iran to buy and sell tokens would put Kraken in violation of the sanctions, which has drawn the attention of federal investigators, the Times reported, citing five people affiliated with the company or with knowledge of the inquiry. If the rumors are true, Kraken would be the largest US crypto firm to face an Office of Foreign Assets Control enforcement action related to sanctions against Iran, we're told.

Kraken, for its part, is keeping mum. The crypto exchange declined to answer The Register's specific questions about the reported investigation and pending fine. Instead, Kraken's Chief Legal Officer Marco Santori emailed a statement. "Kraken does not comment on specific discussions with regulators," Santori said. "Kraken has robust compliance measures in place and continues to grow its compliance team to match its business growth. Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues."

Kraken's reported federal probe follows a series of US enforcement actions against crypto companies and their executives as law enforcement — and juries — increasingly crack down on criminals using crypto business to scam victims out of millions of dollars, launder money and engage in other nefarious activities.

Crypto exchange Kraken reportedly probed over Iran sanctions

Plus: Coinbase said to face SEC wrath, blockchain scam CEO admits using victims' millions to fund Hawaiian condo

www.theregister.com

 

[upnorth]

Nov. 20, 2023 —
The Securities and Exchange Commission today charged Payward Inc. and Payward Ventures Inc., together known as Kraken, with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.

According to the SEC’s complaint, since at least September 2018, Kraken has made hundreds of millions of dollars unlawfully facilitating the buying and selling of crypto asset securities. The SEC alleges that Kraken intertwines the traditional services of an exchange, broker, dealer, and clearing agency without having registered any of those functions with the Commission as required by law. Kraken’s alleged failure to register these functions has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others.

SEC.gov | SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency

www.sec.gov