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The Office of Foreign Assets Control (OFAC) of the United States Treasury is keeping an eye on the Kraken crypto exchange because it may be breaking sanctions. According to sources quoted in the New York Times on July 26, the Treasury is looking into whether Kraken allowed consumers in nations under sanctions to acquire and sell bitcoins. Kraken or the Treasury has not confirmed the probe. The New York Times quoted "five people are involved with the corporation or with knowledge of the inquiry" about the investigation, which began as early as 2019. These people claimed that the exchange, which has already fought with other regulatory bodies in the nation, could face a fine from the American government. In 2021, the exchange was charged by the U.S. Commodity Futures Trading Commission (CFTC), which also levied a $1.25 million punishment.
Kraken Making Money From Iran, Syria, Cuba
The Treasury investigates whether the exchange made trading assets in accounts with addresses in Iran, Syria, and Cuba easier. According to a former employee, Kraken had been making money from users in the nations mentioned above. The research states that there are 83 users in Cuba, 149 users in Syria, and more than 1,500 users in Iran. The probe highlights the authorities' increasing attempts to control the cryptocurrency sector. The use of cryptocurrency in countries subject to sanctions is a hot topic. Lawmakers are getting increasingly worried about how cryptocurrency can help people escape sanctions. Numerous agencies have recognized that cryptocurrency reduces the impact of penalties, raising concerns. These agencies have warned cryptocurrency exchanges not to make their services available in nations under sanction, such as Russia. Some have obliged, such as Binance, which shut down numerous accounts connected to top Russian authorities. Some people have been a little more stubborn than others; for example, Kraken said in March 2022 that it would not expel unauthorized users. Governmental agencies, including the U.S. Treasury, have taken note of North Korea's hacking of crypto organizations. In April 2022, the agency sanctioned 3 ETH addresses that were reportedly connected to North Korea.