Kraken Crypto Exchange is under investigation for allegedly violating economic sanctions. The news dropped yesterday after a report saying the involvement of Kraken with users from Iran.
The Alleged Violation
Kraken has been a trending topic since yesterday. The US crypto exchange is under investigation by The US Treasury Department’s Office of Foreign Assets Control (OFAC).
Kraken crypto exchange allegedly allows users from Iran and other sanctioned countries to keep using the exchange despite the warning of not doing that.
The US has made economic sanctions against Iran since 1979. Therefore, any business based in the US cannot sell or buy products from people in the country.
Breaking 4 mins ago: The US Treasury Dept has launched an investigation into Kraken, for potential violations of US sanctions on Iran.
My thoughts: Regulators are making moves. I'm optimistic it's for the best but there are risks this could hurt a few big players in the space.
— Mario Nawfal (@MarioNawfal) July 26, 2022
According to the New York Times, OFAC has been investigating Kraken for this issue since 2019. The New York Times added that in the same year, Jesse Powell, CEO of Kraken, said in an internal conversation that he would not mind breaking the law if it could benefit the business.
Since the news has dropped, Kraken has not given a response in detail regarding this issue.
Previous News about Kraken
The latest information about Kraken brought up some previous news. A few months ago, CEO Jesse Powell took Twitter to respond about stopping users from Russia from using the exchange. He said that it would not happen without legal requirements.
Last year, Kraken was fined $1.25m by the US CFTC for “illegally offering margined retail commodity transactions in digital assets.”
While Kraken is currently under investigation, OpenSea recently banned Iranian users from using its platform.
Not long after the news, the community on Twitter has been posting their views on the issue.