Kraken's parent company, Payward, won a $22 million arbitration award against former auditor Mazars USA after the firm withdrew from a nearly completed audit ⚖️
According to Kraken, Mazars exited the engagement despite stating it had no disagreements with management, no fraud concerns, and no integrity issues 📄
Kraken argues the withdrawal caused significant reputational damage during the period known as "Operation Choke Point 2.0," when many crypto firms faced increased regulatory pressure.
The exchange says the abandoned audit affected its banking relationships, licensing efforts, and regulatory standing, leading to years of legal costs 💼
Kraken also noted that the SEC's lawsuit against the exchange was dismissed in 2025 with prejudice, without penalties or admissions of wrongdoing.
Co-CEO Arjun Sethi used the announcement to advocate for the CLARITY Act, arguing that clearer crypto regulations would reduce legal uncertainty for the industry.
Today's Pill - clear and consistent regulation can be just as important as innovation in helping an industry earn long-term trust 🔄
According to Kraken, Mazars exited the engagement despite stating it had no disagreements with management, no fraud concerns, and no integrity issues 📄
Kraken argues the withdrawal caused significant reputational damage during the period known as "Operation Choke Point 2.0," when many crypto firms faced increased regulatory pressure.
The exchange says the abandoned audit affected its banking relationships, licensing efforts, and regulatory standing, leading to years of legal costs 💼
Kraken also noted that the SEC's lawsuit against the exchange was dismissed in 2025 with prejudice, without penalties or admissions of wrongdoing.
Co-CEO Arjun Sethi used the announcement to advocate for the CLARITY Act, arguing that clearer crypto regulations would reduce legal uncertainty for the industry.
Today's Pill - clear and consistent regulation can be just as important as innovation in helping an industry earn long-term trust 🔄