San Francisco-based cryptocurrency exchange Kraken is under investigation by the US Treasury Department's Office of Foreign Assets Control for alleged sanctions violations, according to a New York Times report.
Five people “affiliated with the company or with knowledge of the inquiry” informed the NYT that the exchange has opened its doors to customers in Iran and other countries under US sanctions.
Kraken’s chief legal officer Marco Santori told Decrypt: “Kraken has robust compliance measures in place and continues to grow its compliance team to match its business growth. Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”
It’s not the first time Kraken’s business practices have come under fire.
In September 2021, the Commodity Futures Trading Commission imposed a US$1.25mln fine for failing to register as a futures commission merchant.
The US has imposed numerous sanctions on the Islamic republic ever since 1979, a policy which has continued through to the current Biden administration.