Kraken pays over US$360K to US Treasury to settle Iran sanctions allegations

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U.S.-based cryptocurrency exchange Kraken has agreed to pay over US$362,000 to settle claims that it violated sanctions against Iran, the U.S. Treasury Department announced on Monday

See related article: Coin Center files lawsuit over Tornado Cash sanctions, defends crypto privacy rights

Fast facts

  • Kraken violated U.S. sanctions by allowing Iranian users to conduct transactions worth more than US$1.68 million between October 2015 and June 2019, according to the Treasury Department’s Office of Foreign Assets Control (OFAC). 
  • U.S. goods, technology and services are restricted from export to Iran under a broad set of sanctions.
  • OFAC said Kraken didn’t appropriately implement tools that identify users’ geolocations and IP addresses, blocking those from sanctioned countries. 
  • The settlement represents the Treasury’s latest crackdown on the cryptocurrency industry. Crypto exchange Bittrex Inc. paid around US$30 million to the Treasury in October to settle allegations related to sanctions and anti-money laundering laws.
  • Kraken will invest US$100,000 in its sanctions compliance controls, including training and technical measures to assist in sanctions screening, as part of the settlement agreement. 
  • About six months prior to the settlement, Kraken lost its chief global compliance officer Steven Christie to rival cryptocurrency exchange Binance.

See related article: Crypto exchange Kraken reportedly under investigation for Iran sanctions breach

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