Kraken crypto exchange platform has agreed to pay a fine of $362,158.70 for violating US sanctions against processing payments in Iran.
The company had been sued by the Department of the Treasury, which claimed that it had been carrying out these illegal transactions from October 14, 2015, to June 29, 2019.
However, it appears that Kraken had disclosed the transactions themselves, according to the settlement which mentions that the violations were not egregious as well. The transactions were valued at over $1.68 million but it was not linked to the government of Iran or any of its officials.
In the wake of sanctions against the country, US companies were expected to implement compliance tools to prevent users living there from accessing their website. While Kraken had failed to apply IP address blocking.
The chief legal officer at Kraken, Marco Santori, claimed that the company has since applied the required blocks since it discovered its error including geolocation blocking and hiring for the position of head of sanctions.
With the volatility of the cryptocurrency industry at this time, any negative news is a reason to worry, especially given that the digital asset world needs all the acceptance it can garner at this time and no more scrutiny.
Following FTX’s spectacular crash and the domino effect it had on related firms and the industry in general, the situation has been shaky. Crypto bosses have been making rounds reassuring investors and customers of the safety of their funds. Although, what they really need is a break from bad news, which looks like it is not stopping anytime soon.
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