Kraken Agrees To Pay Over $362K For Violating OFAC’s Iran Sanctions
Kraken exchange will pay over $362,000 as part of its settlement with US regulators. This settlement comes after the exchange reportedly violated the US sanctions on Iran.
Also, Kraken will be paying about $100,000 as an add-on. The agency previously accused the crypto exchange of providing crypto services for Iranians violating US sanctions.
OFAC announced on Monday that Kraken would pay over $362,000 to settle the civil liability. Additionally, the crypto firm will pay an add-on of $100,000 for compliance controls.
OFAC’s statement reads, “Kraken offers crypto services to Iranians who hid their locations when conducting crypto transactions on the exchange. This occurred due to the exchange’s failure to adopt geolocation tools and an automatic IP address blocking technology.”
Meanwhile, Marco Santori, the chief legal officer for Kraken, noted that the exchange has swiftly corrected and self-reported its activities to OFAC.
Santori said Kraken took some steps to ensure regulatory compliance before entering the latest agreement. He added that Kraken strengthened its control system, enhanced accountability and trading, and expanded its compliance team.
Meanwhile, the US has imposed restrictions on Iran since 1979. The regulations prohibit exporting goods and services to individuals and businesses in the nation.
Kraken Violates US Sanctions On Iran, Syria, And Cuba
Kraken reportedly began violating the US sanctions in 2019. The crypto firm allowed over 1,500 Iran residents to operate crypto accounts on its platform.
This allowed the Iranians to sell and buy crypto on the platform. A New York Times report quoted Jesse Powell, Kraken’s CEO, four months ago, saying the platform is willing to break laws.
However, he did not specifically mention sanctions. According to Powell, the exchange would break laws if the benefits outweigh any legal or financial penalty it might face.
Additionally, reports alleged that Kraken offers crypto services to individuals in Cuba and Syria. These are countries still under sanctions by the US.
Last September, the US CFTC (Commodity Futures Trading Commission) fined Kraken exchange over $1 million. This was after the crypto exchange allegedly violated the commission’s Commodity Exchange Act.
Between June 2020 and July 2021, Kraken offered margined digital assets retail transactions to ineligible American users.
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