Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Crypto Exchange Kraken Settles With Treasury Department For Violating Sanctions – Regulation Bitcoin News
Crypto exchange Kraken has settled with the US Treasury Department’s Office of Foreign Assets Control (OFAC) over its apparent violation of sanctions against Iran. The cryptocurrency exchange has agreed to pay $362,159 to settle its potential civil liability and invest an additional $100,000 in certain penalties.
Kraken settles with OFAC
The US Department of Treasury’s Office of Foreign Assets Control (OFAC) on Monday announced a settlement with Payward Inc. (d/b/a Kraken), a Delaware-incorporated crypto exchange. The announcement states:
Kraken agreed to pay $362,158.70 to settle its potential civil liability for alleged violations of sanctions against Iran … As part of the settlement with OFAC, Kraken has also agreed to invest an additional $100,000 in certain controls of sanctions.
According to the Ministry of Finance, between approx. On October 14, 2015 and June 29, 2019, “Kraken processed 826 transactions, totaling approximately $1,680,577.10, on behalf of individuals who appeared to be located in Iran at the time of the transactions.”
The Ministry of Finance detailed:
At the time of the apparent breaches, Kraken did not implement IP address blocking on cross-platform transactional activity.
Kraken voluntarily self-disclosed the apparent breaches and cooperated with OFAC’s investigation, the Treasury Department noted, adding that the crypto trading platform also “undertook significant remedial actions in response to the apparent breaches.” The announcement adds:
After identifying this issue, Kraken implemented automated blocking for IP addresses associated with sanctioned jurisdictions. Kraken also implemented several blockchain analysis tools to help with the sanctions monitoring.
The Office of Foreign Assets Control has sanctioned several cryptocurrency trading platforms over time. For example, the crypto exchange Bittrex was charged with sanctions violations in October.
What do you think about Kraken settling with the Treasury Department’s OFAC regarding sanctions violations? Let us know in the comments section below.
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