Security News > 2022 > July > Crypto exchange Kraken reportedly hunted by the Feds for alleged sanctions busting

The US government is reportedly investigating Kraken, a massive cryptocurrency exchange suspected of violating sanctions against Iran, and is expected to slap the crypto behemoth with a fine in the near future.

Allowing users in Iran to buy and sell tokens would put Kraken in violation of the sanctions, which has drawn the attention of federal investigators, the Times reported, citing five people affiliated with the company or with knowledge of the inquiry.

If the rumors are true, Kraken would be the largest US crypto firm to face an Office of Foreign Assets Control enforcement action related to sanctions against Iran, we're told.

Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.

"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."

Kraken's reported federal probe follows a series of US enforcement actions against crypto companies and their executives as law enforcement - and juries - increasingly crack down on criminals using crypto business to scam victims out of millions of dollars, launder money and engage in other nefarious activities.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/07/26/us_government_kraken/