Cryptocurrency exchange Kraken was investigated by the US Treasury Department for allegedly allowing Iranian users to use services in violation of federal sanctions.
The New York Times reported on Tuesday that the Treasury Department is likely to fine the exchange, though it did not set a deadline for enforcement action.
According to the report, the number of Kraken users residing in Iran is 1,500. OFAC has been keeping an eye on this exchange since 2019 and the fine is only a matter of time.
The US has maintained economic sanctions against Iran since 1979, banning the export of goods or services to businesses and individuals in the country. However, according to insiders, Kraken CEO Jesse Powell is willing to break the law if the company’s benefits outweigh the costs.
Kraken’s legal director Marco Santori said:
“Kraken is yet to comment on negotiations with regulators. Kraken has adhered to strict regulations and developed the team in line with the growth of the enterprise business. Kraken complies with sanctions as a matter of general and is always ready to report to the regulator when there is a problem.”
At the same time, former Kraken employee Nathan Peter Runyon filed a lawsuit against the company for practicing unethical and illegal business tactics, misleading employees about stock options, and violating sanctions. .
Not long ago, Binance also faced a lot of evidence that the exchange bypassed the US, operating underground in Iran. The exchange even suggests how to use a VPN to bypass the surveillance agency. However, Binance CEO Changpeng Zhao immediately spoke out after that.