Kraken Secures $22M Arbitration Win Against Former Auditor Mazars
Payward, the parent company of the Kraken crypto exchange, has secured a massive $22 million arbitration award against former auditor Mazars USA. The dispute arose after Mazars abruptly withdrew from the 2022 audit process, an action Kraken claims caused millions in damages and disrupted critical business operations.
This legal victory highlights the growing tension between crypto firms and traditional service providers, specifically regarding the impact of 'Operation Chokepoint 2.0'. Kraken leadership argues that independent audits are the 'oxygen' required to maintain banking services and regulatory licenses, underscoring the high stakes of institutional trust in the digital asset space.
Payward contends that Mazars withdrew from the exchange's nearly completed 2022 audit despite finding no evidence of fraud or management integrity issues. Sethi underscored the necessity of these financial reviews, stating, 'An audit is not a favor. It is oxygen,' noting that such processes are vital for securing banking services, licenses, and essential business relationships within the industry.
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