US Treasury Department Investigated Kraken Crypto Exchange, Here's Why!

Crypto trading platform Kraken under US Treasury investigation. (block duo)

JAKARTA – One of the leading crypto trading companies in the United States, Kraken, is being investigated by the US Treasury regarding suspected crypto trading with Iran.

According to a recent report, the investigation was revealed by five people affiliated with the Kraken crypto exchange. The five people chose not to disclose their information to the public for fear of unwanted things happening.

The investigation by the US Department of Finance allegedly began in 2019. If true, Kraken would be the largest crypto company facing enforcement action from the Office of Foreign Assets Control (OFAC) for sanctions violations related to Iran.

For information, OFAC is the division of the US Treasury that regulates and applies economic and trade sanctions based on US foreign policy, as well as national security objectives against foreign countries and regimes, terrorists, international drug dealers, parties involved in activities related to proliferation of weapons of mass destruction, and other threats to the national security, foreign policy, and economy of the United States.

Iran is one of the countries affected by these sanctions. The US has restricted trade with the country after restrictive regulations were implemented in 1979. Since then, the government has banned the export of any goods and services to Iran.

A spokesperson for the Treasury Department said it does not comment on potential or ongoing investigations. Similarly, Kraken Chief Legal Officer Marco Santori said the company "does not comment on specific discussions with regulators."

“Kraken closely monitors compliance with sanctions laws and, in general, reports to regulators even potential problems,” Santori said.

Additional information, Kraken is a crypto exchange that was founded on July 28, 2011 in the United States. Its founder is Jesse Powell. Kraken was worth around $10 billion in midsummer this year.