Kraken exchange settles allegations of Iran sanctions by paying the US Treasury over $360,000

Kraken crypto exchange settles with SEC

The U.S. Treasury Department announced on November 28 that American crypto exchange Kraken had agreed to pay more than $362,000 to resolve allegations that it had broken Iranian sanctions.

According to the Treasury Department’s Office of Foreign Assets Control (OFAC), Kraken exchange broke American sanctions by allowing Iranian users to conduct transactions totaling more than $1.68 million between October 2015 and June 2019.

A comprehensive set of sanctions prohibits the export to Iran of American products, technologies, and services.

The crypto exchange was accused by OFAC of improperly implementing tools that track users’ IP addresses and geolocations and block users from sanctioned nations.

The settlement is the result of the Treasury’s most recent campaign against the cryptocurrency sector.

Bittrex Inc., a cryptocurrency exchange, paid the Treasury around $30 million in October to resolve accusations relating to sanctions and anti-money laundering (AML) laws.

As part of the settlement agreement, Kraken will invest $100,000 in its sanctions compliance controls, which will include technical assistance for sanctions screening and training.

Six months or so before the settlement, Kraken lost Steven Christie, its chief global compliance officer, to Binance, a competing crypto exchange.


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