Crypto Exchange Kraken Reportedly Investigating Iran Sanctions • Register

The US government is reportedly investigating Kraken, a large-scale cryptocurrency exchange suspected of violating sanctions against Iran, and the crypto giant is expected to be fined in the near future.

The Treasury Department’s Office of Foreign Asset Control has been investigating the US crypto exchange since 2019, according to the New York Times, which broke the story on Tuesday.

“The Treasury does not confirm or comment on potential or ongoing investigations. We remain committed to using all of our tools and authorities to enforce sanctions that protect US national security.” register Uncle Sam told.

US sanctions against Iran bar any exports to the Middle-East nation. Allowing users in Iran to buy and sell tokens would violate Kraken sanctions, which has attracted the attention of federal investigators, the Times reported, citing the knowledge of five people linked to the company or the interrogators.

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

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

Kraken, for its part, is keeping silence. Crypto Exchange Refused to Respond registerSpecific questions about reported investigations and pending fines. Instead, Kraken’s chief legal officer Marco Santori emailed a statement.

“Kraken does not comment on specific discussions with regulators,” Santori said.

“Kraken has strong compliance measures and continues to grow its compliance team to match the growth of its business. Kraken closely monitors compliance with sanctions laws and, as a general matter, allows regulators to potentially Also reports on issues.”

Kraken’s reported federal investigation follows a series of US enforcement actions against crypto companies and their executives as law enforcement – and jury – on criminals using crypto business to scam millions of dollars, launder money To commit and engage in other nefarious activities.

Last week the Fed announced criminal charges against former Coinbase manager Ishaan Wahi, as well as his brother and a friend, in what could be the first cryptocurrency insider-trading scheme in the US. The action follows an insider trading prosecution involving NFTs for the first time last month.

And speaking of Coinbase: It is, Bloomberg reports, facing an SEC investigation for allowing netizens to buy and sell cryptocurrencies that, in the watchdog’s view, should be registered as securities by Coinbase was, but was not.

Coinbase has emphasized that the tokens it trades are not securities, which have special registration requirements. The SEC begs to differ, saying that at least some of the altcoins it offers are securities and should have been properly registered.

Furthermore, it is reported, the SEC believes that some coins in the same case are examples of digital tokens that should have been registered as securities by Coinbase.

“I am pleased to say this over and over again: We believe that our rigorous due diligence process – a process that has already been reviewed by the SEC – keeps securities off our platform, and we are working with the SEC on the matter. We look forward to joining you,” Coinbase Chief Legal Officer Paul Grewal tweeted In reply today.

Read |  Should you store all your crypto on Coinbase, or get a separate wallet?

Also last week, a rogue who created a business called My Big Coin to defraud victims of more than $6 million was found guilty by a jury.

And on Friday, the CEO and founder of Titanium Blockchain Infrastructure Services pleaded guilty to his role in a cryptocurrency fraud scheme involving Titanium’s initial coin offering (ICO), which deducted $21 million from victims who thought they were a legitimate token. were investing in.

according to court documents [PDF]Michael Allen Stollery, 54, of Reseda, Calif., lured people into buying up his company’s worthless digital coin with a series of lies — including Apple, IBM, Intel, HPE, Honewell, Microsoft, General Electric, Boeing. And Walt Disney, other well-known brands also had customers.

According to the Fed, Stollery also broke the law when he failed to register the ICO with the US Securities and Exchange Commission. His crypto-coin was basically worthless and worthless, so the scars were simply blowing up money for him to spend.

The CEO falsified parts of Titanium Blockchain’s white papers, including those related to his company’s profitability, and admitted to using people’s cash for expenses unrelated to his company – such as credit cards. Pay from and bills for their Hawaiian condo.

Stollery pleaded guilty to one count of securities fraud, and is scheduled to be sentenced on November 18. He faces up to 20 years in prison.

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