U.S-based cryptocurrency exchange Kraken has agreed to pay over $362,000 with a specific $100,000 add-on as a penalty to settle civil liability related to apparent violations of sanctions on Iran.
Kraken exchange has violated U.S sanctions by allowing Iranian users to conduct transactions between October 2015 and June 2019, In July 2022, the U.S Treasury Department Office of Foreign Assets Control(OFAC) started an investigation on Kraken.
U.S has imposed sanctions on Iran, Cuba, and Syria that restricted the export of goods or doing business with those countries since 1979, doing business or offering services to those countries would trigger penalties.
This is another crackdown on the cryptocurrency exchange, Bittrex has to pay a sum of $30 million to the U.S Treasury Department Office of Foreign Assets Control(OFAC) to settle allegations related to sanctions and anti-money laundering laws.
As part of its settlement with U.S Treasury Department Office of Foreign Assets Control(OFAC), Kraken also has agreed to invest an additional $100,000 in certain 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 Kraken’s platform.” According to a statement by OFAC.