Kraken Settled With OFAC Over Serving Customers In Iran By Agreeing To Pay $362,159

The crypto exchange Kraken agreed today to pay $362,158.70 to the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) as a settlement of alleged sanctions violations.

Agree to invest $100,000

Furthermore, Kraken agreed to invest $100,000 in implementing additional sanctions compliance controls as part of its settlement.

In keeping with OFAC’s findings, Kraken failed to implement appropriate geolocation tools, including an automated blocking system for internet protocol (IP) addresses, making Kraken’s platform accessible to Iranian customers.

“Due to Kraken’s failure to timely implement appropriate geolocation tools, including an automated internet protocol (IP) address blocking system, Kraken exported services to users who appeared to be in Iran when they engaged in virtual currency transactions on Kraken’s platform,” cited the press release.

It opened an investigation into Kraken in July after it was alleged that it violated Iran’s economic sanctions.

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According to the agency, Kraken processed 826 transactions for individuals who were identified as being in Iran from October 14, 2015 to June 29, 2019. The total transaction amount was approximately $1,680,577.10.

Despite knowing the exchange had customers worldwide, Kraken failed to meet its sanctions compliance obligations, according to OFAC.

The firm pleased to be able to resolve the case

“Kraken is pleased to have resolved this matter, which we discovered, voluntarily self-reported and swiftly corrected,” Marco Santori, chief legal officer at Kraken, told CoinDesk through email. 

“Even before entering into this resolution, Kraken had taken a series of steps to bolster our compliance measures. This includes further strengthening control systems, expanding our compliance team and enhancing training and accountability,” the chief added.

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Furthermore, he explained that with these enhanced systems in place, they will be in a better position to advance their mission of spreading cryptocurrency across the globe and allowing people to participate in the financial system.

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Jamilatul Mahmudah

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