Kraken Crypto exchange decided to settle its case with the US OFCA agency. For the same, Kraken will pay more than $360k as a fine.
Kraken is a popular crypto exchange. In terms of 24 hours global crypto trade volume, the exchange is standing at second rank.
This Crypto exchange was established in mid-2011. In the past, this exchange already faced little US regulatory pressure.
Initially, in 2019, New York Times reported that Kraken may face some charges because of its possible violation of US sanctions laws. After that time frame, the investigation against the Kraken exchange was started in July 2022.
The final results of the investigation found that Kraken’s crypto services were available to Iranian users, which are under a sanction imposed by the United States Treasury Department’s Office of Foreign Assets Control (OFAC).
The OFCA agency also found that 1,500 customers with residences in Iran had accounts at Kraken as of June 2022. 149 users in Syria and 83 in Cuba were also reportedly able to access the Kraken exchange.
Under the US Sanctions, Since 1979, no US company/individual/business has been allowed to provide services to the residents of Iran, Cuba, and Syria. But here intentionally/mistakenly Kraken provided services to these restricted countries’ people, which was illegal.
Kraken will settle its case with the OFCA. As a fine, Kraken will pay $362,158.70 to the US agency. The exchange also will remit $100,000 in certain sanctions compliance controls.
OFCA agency stated:
“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.”
Last year, Kraken was found guilty of illegal trading activities and finally remitted $1.25 million as a fine to the US regulatory board.