Updated: Jul 28
New York Times announced that Kraken is being investigated for sanctions violations by the United States Treasury's Office of Foreign Assets Control.
The department is looking into whether users in sanctioned nations were able to buy and sell cryptocurrency.
According to the New York Times on July 26, the US Treasury's Office of Foreign Assets Control (OFAC) is looking into whether Kraken allows consumers in sanctioned countries to buy and sell bitcoins. The probe has not been confirmed by Kraken or the Treasury.
The New York Times also noted that the investigation began in 2019, citing "five people linked with the corporation or with knowledge of the inquiry."
According to these individuals, the US government may levy a fine on the exchange, which has already clashed with other regulatory bodies in the country.
The Commodity Futures Trading Commission (CFTC) of the United States filed charges against the exchange in 2021, issuing a $1.25 million fine.
The Treasury Department is investigating whether the exchange aided the trade of assets in accounts in Iran, Syria, and Cuba. As per a former employee, Kraken was receiving revenue from users in those nations.
Research shows that there were over 1500 users in Iran, 149 in Syria, and 83 in Cuba. The inquiry highlights the authorities' expanding efforts to exert control over the cryptocurrency sector