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Cryptocurrency exchange Kraken has reportedly been the subject of an ongoing federal investigation for allegedly violating U.S. sanctions on Iran.
After the U.S. embassy in Tehran was taken hostage in 1979, the U.S. restricted its activities with Iran. Therefore, US companies are not allowed to buy or sell goods to people in the Middle East.
According to a New York Times article, citing anonymous source close to the matter, Kraken is suspected of violating this sanction.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) has been investigating Kraken since 2019 for allegedly allowing Iranian users to buy digital and and sell digital assets.
The report noted that Kraken could face fines, making the $11 billion private company the largest U.S. crypto firm facing enforcement action by the OFAC.
A Treasury Department spokesperson said the agency was committed to imposing sanctions to protect national security, nevertheless did not comment on a possible investigation into the cryptocurrency exchange. confirm the alleged investigation.
Kraken’s Chief Legal Officer, Marco Santori, said that the exchange is in compliance with existing sanctions laws, however, he did not disclose further details:
“Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”