The Department of the Treasury accused the exchange of violating US sanctions against Iran. An extra $100,000 is required for certain sanctions compliance controls for Kraken, which allows users to buy, sell, hold, and tradecryptocurrencies.
According to the details of the settlement, Kraken processed over one million dollars for customers who may have been located in Iran. According to the Department of the Treasury, there were apparent violations between October 14th, 2015, and June 29th, 2019.
In order to prevent users from signing up in sanctioned locations, a sanctions compliance program was already in place. According to the data obtained by the Treasury Department, some users were able to sign up for the platform in areas not subject to US sanctions, and then proceed to conduct transactions in countries that are not subject to US sanctions.
The firm has implemented a number of changes, including adding geolocation blocking to prevent users from accessing the site in sanctioned locations, as well as hiring a dedicated head of sanctions. The company has invested in sanctions compliance training for staff.
As a result of the collapse of FTX, many firms are looking to regain users' trust. BlockFi has filed for bankruptcy, and Genesis has stopped withdrawing money. Several companies have committed to publishing their proof of reserves in order to be more transparent.
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