Kraken Wins $22M Arbitration Against Former Auditor Mazars

Crypto exchange Kraken's parent company, Payward Inc., was awarded $22 million in an arbitration case against its former auditor, Mazars. The dispute stemmed from Mazars' withdrawal from auditing Kraken's 2022 financial statements. Payward argued that this withdrawal caused significant damages and disrupted its business operations.

In its statement, Payward linked the arbitration outcome to "Operation Chokepoint 2.0," a term often used to describe alleged efforts by U.S. regulators to pressure financial institutions into severing ties with certain industries, including cryptocurrency. The company asserted that Mazars' decision to cease its audit services was influenced by external pressures rather than legitimate concerns about Kraken's financial reporting.

The arbitration proceeding, which concluded this week, found in favor of Kraken, awarding the company $22 million in damages. This ruling represents a significant victory for Kraken in its legal battle with the accounting firm. Mazars had previously audited Kraken's financial statements for several years before terminating the engagement in late 2022.

Payward stated that the arbitration award validates its position that Mazars' actions were unwarranted and harmful. The company intends to pursue enforcement of the award. The case highlights the complex legal and regulatory landscape faced by cryptocurrency exchanges and their service providers.