Kraken is reportedly under investigation for allegedly serving crypto customers in Iran in violation of U.S. sanctions.
Kraken is suspected of letting users in Iran and other places buy and sell digital assets, violating U.S. sanctions in place since 1979, the New York Times reported Tuesday, citing unnamed sources.
The Treasury Department’s Office of Foreign Assets Control, which has been investigating Kraken since 2019, is expected to impose a fine against the crypto marketplace, the report said.
The Times also said it has reviewed internal messages in which CEO Jesse Powell suggested being open to breaking the law if it would be beneficial to Kraken.
Kraken "does not comment on specific discussions with regulators," Chief Legal Officer Marco Santori said in a statement. He also said the company has "robust compliance measures" and "closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues."
The reported probe of Kraken overseas transactions highlights the growing concerns that crypto companies have been violating U.S. laws and sanctions against countries like Iran, North Korea and Russia.
Earlier this month, Reuters reported that Binance, another major crypto marketplace, processed transactions by customers in Iran, violating a U.S. ban.
Correction: An earlier version of this story misstated when Reuters reported on Binance's ban violation. This story was updated on July 26, 2022.