Cryptocurrency exchange Kraken has now agreed to settle with the Department of the Treasury over transactions that appear to have violated the United States Iran sanctions.
And as such, the giant crypto platform is settling to pay more than $360,000.
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A visual representation of the digital Cryptocurrency, Bitcoin on December 07, 2017 in London, England. Cryptocurrencies including Bitcoin, Ethereum, and Lightcoin have seen unprecedented growth in 2017, despite remaining extremely volatile.
Crypto Exchange Kraken Settles Over Transactions That Appear to Violate Iran Sanctions
As per the latest news story by The Verge, the crypto exchange has finally settled with the Department of Treasury. It has agreed to pay a whopping $362,000 over possible violation of Iran sanctions in the country.
It is worth noting that Kraken, like any other crypto exchange, allows its users to buy, sell, trade, or hold various digital assets listed on the platform.
However, it turns out that hundreds of transactions worth a staggering $1.68 million are from users who are located in Iran, the settlement document reveals.
Some Kraken Users Transacted While in Iran
The Verge notes in its article that the crypto service actually prevents new users from signing up in locations that are part of the US sanctions. So it turns out that the platform does hold some sort of compliance with the sanction program.
But here's where they got in trouble.
The Department of Treasury says that Kraken "did not implement IP address blocking" while users are using the crypto exchange. So if ever users signed up in the US, they could apparently continue selling or buying digital assets even if they transfer to Iran.
The Treasury Department found out based on the IP addresses of Kraken users that some users did such a thing. Some did sign up in the US and then went on with their transactions while in Iran.
Read Also: #TechCEO: Kraken Boss Jesse Powell And His Goal To Make Crypto Investing And Trading Easier
Iran Sanction Violation
According to a recent report by Decrypt, the Treasury Department explained the possible violations of the crypto exchange.
The US agency says that "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 Kraken's platform."
Meanwhile, the Chief Legal Officer of Kraken, Macro Santori, issued a statement to Decrypt.
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MIAMI, FLORIDA - APRIL 8: Marco Santori, Chief Legal Officer of Kraken Digital Asset Exchange, reacts during the Bitcoin 2022 Conference at Miami Beach Convention Center on April 8, 2022 in Miami, Florida. The worlds largest bitcoin conference runs from April 6-9, expecting over 30,000 people in attendance and over 7 million live stream viewers worldwide.
The exec says that the crypto exchange "is pleased to have resolved this matter, which we discovered, voluntarily self-reported, and swiftly corrected."
The Treasury Department says that the transactions located in Iran are worth around $1.6 million. And these activities took place between October 14, 2015, and June 29, 2019.
Related Article: US Treasury Sanctions Kraken for Allowing Crypto Trading in Prohibited Countries
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Written by Teejay Boris
