According to unnamed sources, Kraken is believed to have allowed Iranian users to use its exchange despite federal sanctions. According to the New York Times, the U.S. Treasury Department’s Office of Foreign Assets Control has begun an investigation into cryptocurrency exchange Kraken. Kraken is accused of violating economic sanctions against Iran.
Five people with knowledge or affiliation with Kraken told the New York Times Kraken is suspected to have allowed customers from Iran and other sanctioned nations to use its exchange, despite it being forbidden. According to the report, the sources requested anonymity out of fear of reprisal.
Since 1979, the United States has maintained economic sanctions against Iran. This means that no U.S.-based business can sell or buy goods to Iran.
Marco Santori, Kraken’s Chief Law Officer, told Decrypt via email that Kraken “does not comment on specific discussions between regulators.”
Kraken has strong compliance measures in place, and is growing its compliance team to keep up with its business growth. Santori stated that Kraken monitors compliance with the sanctions laws closely and reports any potential problems to regulators.
Although Kraken is under investigation for violating U.S. sanction, OpenSea disappointed some users when it made a point to enforce U.S. Sanctions against Iran earlier in the year. The NFT marketplace, based in New York, banned several Iranian traders in March.
In September, the U.S. Commodity Futures Trading Commission imposed a $1.25 Million fine on Kraken for listing illegal off-exchange digital assets trading and failing to register as required.
The company is currently dealing with an internal culture clash. Last month Kraken CEO Jesse Powell increased his efforts to make sure that the exchange remains a “freedom organization” and stated that “triggered” employees should be fired.
