SEC · CLARITY Act · Decrypt
Kraken Lands $22 million From Auditor That Abandoned It During Operation Choke Point 2.0
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★ Tier-1 Source
Kraken's parent company, Payward, has won a $22 million arbitration award against its former auditor, Mazars USA, which walked away from a nearly finished audit, the crypto exchange said .
Key facts
- Kraken will enter a $22M award with the Delaware Court of Chancery -- compensation for financial harm inflicted on them by the coordinated campaign to cut crypto off from banking, auditors, and other essential services. pic.twitter
- Kraken's parent company, Payward, has won a $22 million arbitration award against its former auditor, Mazars USA, which walked away from a nearly finished audit, the crypto exchange said
- Operation Choke Point 2.0 is a widely used term for what critics describe as the Biden administration's unofficial campaign to pressure banks into cutting off the crypto industry after the collapse
- It's been a while since they talked about Chokepoint 2.0
Summary
An arbitrator awarded Payward, Kraken's parent company, $22 million after it sued former auditor Mazars USA for quitting a nearly complete audit, the exchange said in a blog post. Co-CEO Arjun Sethi said Mazars cited legal uncertainty around the SEC's since-dismissed case against Kraken when it withdrew, and alleged the firm had been pressured to drop the industry. Payward is asking the Delaware Court of Chancery to enter final judgment on the award, and Sethi used the letter to press for passage of the Clarity Act. Payward is now asking the Delaware Court of Chancery to enter final judgment on the award, in an open letter from co-CEO Arjun Sethi that doubled as a call to overhaul U.S. crypto rules.