Kraken Agrees To Pay $362,158 Fine For Iran Sanctions Violation

U.S. crypto exchange Kraken settled with the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) today and agreed to pay a $362,158.70 fine for obvious sanctions violations against Iran.

In an Enforcement Release published on November 28, 2022, it was announced that OFAC had confirmed Kraken’s payment of more than $362,000 in fines for agreeing to an alleged breach of financial sanctions against with Iran. As part of the settlement, this exchange will invest an additional $100,000 in sanctions compliance controls.

“Due to Kraken’s failure to timely implement appropriate geolocation tools, including an automated internet protocol (IP) address blocking system, Kraken exported services to users who appeared to be in Iran when they engaged in virtual currency transactions on platform,”

The agency wrote

In July, the agency opened an investigation into Kraken for alleged violations of economic sanctions against Iran. The New York Times cited anonymous sources affiliated with the company confirming that the crypto exchange allows customers in Iran and other sanctioned countries to use its platform.

From October 14, 2015 to June 29, 2019, the agency said this exchange processed 826 transactions, totaling approximately $1,680,577.10, for individuals granted identified as being in Iran at the time.

“Kraken is pleased to have addressed this issue that we discovered, self-reported, and quickly fixed.”

Kraken’s chief legal officer, Marco Santori, told Decrypt in an emailed statement

Last year, the Commodity Futures Trading Commission ordered the exchange to pay a $1.25 million fine for “illegally providing margin retail commodity transactions using digital assets.” , including Bitcoin and do not register as a futures commission merchant.

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