“Iran” Penalty from the US Treasury Department to Cryptocurrency Exchange Kraken!

a US-based cryptocurrency Kraken has agreed to pay more than $360,000 to the Treasury Department to settle charges that it violated US sanctions on users in Iran regarding cryptocurrency transactions.

Kraken Allegedly Allowing Iranian Users to Take Transactions

The Treasury Department’s Office of Foreign Assets Control (OFAC) has acknowledged that Kraken, the second-largest crypto exchange by volume in the United States, has agreed to pay compensation for allowing approximately $1.7 million in transactions to individuals who were found to be in Iran between October 2015 and June 2019. explained.

The United States of America imposed sanctions against Iran in 1979, prohibiting the export of goods or services to individuals or organizations in the country.

OFAC said in a statement that the maximum legal fine for violations could be more than $270 million, but the payout would be much less as Kraken reports potential violations. In addition, the company has agreed to spend an additional $100,000 on new compliance checks.

“Kraken did not show due care and attention to its obligations to comply with sanctions,” the statement said. It was added that the company has user data showing that “transactions appear to have been made from Iran”.

Kraken, a $11 billion private company that allows users to buy, sell or hold a variety of cryptocurrencies, has previously held regulatory filings, including a $1.25 million penalty from the Commodity Futures Trading Commission for offering a prohibited trading service. faced with the proceedings.

The company’s co-founder and CEO, Jesse Powell, announced in September that he was resigning after internal conflicts with employees and government investigations.

*Not investment advice.