According to the New York Times, the US Department of the Treasury since 2019 cryptocurrency exchange is investigating Kraken and is expected to fine the cryptocurrency exchange.
According to the Times, the firm may have violated US sanctions by allowing users in Iran, Cuba and Syria to buy and sell digital assets. The investigation is conducted by the Treasury Department’s Foreign Assets Control Office. Kraken will be the largest American crypto firm to be sanctioned by the office.
Cryptocurrency Exchange Kraken Allegedly Has Users From Iran
Kraken allegedly allows users to open accounts in Iran, as well as in Syria and Cuba, which are under US sanctions, according to the Times. Sanctions against Iran have been in effect since 1979. A Kraken worksheet viewed by the Times showed that the firm has more than 1,500 users residing in Iran.
bitcoin Jesse Powell, CEO of Kraken exchange, has been upfront about who is allowed to use the exchange. In February, it resisted calls for Russian users to freeze their accounts, days after the country invaded Ukraine. While the US has imposed sanctions on some Russian businesses and individuals, it has not forced Russian-based crypto companies to leave the country.
Powell and the Treasury Department did not respond to requests for comment.
Kraken Chief Legal Officer Marco Santori said:
“Kraken has robust compliance measures and continues to grow its compliance team in line with its business growth. Kraken closely monitors compliance with enforcement laws and, as a general matter, even reports potential issues to regulators.”
*Not investment advice.