Crypto exchange Kraken is reportedly under federal investigation for allegedly violating a US sanction against Iran.
The US has imposed restrictions on activities with Iran following the hostage crisis at the American embassy in Tehran in 1979.
As a result, US-based businesses are not allowed to buy or sell goods to anyone in the Middle Eastern country.
Kraken is reportedly suspected of violating this sanction.
Citing unnamed people affiliated with the exchange or who are familiar with the matter, The New York Times reports that the Treasury Department’s Office of Foreign Assets Control (OFAC) has been investigating Kraken since 2019 for allegedly allowing Iran-based users to buy and sell digital assets.
The OFAC administers and enforces the economic and trade sanctions imposed by the US.
The report says that Kraken will likely get fined, which will make the $11-billion private company the biggest US-based crypto firm to face enforcement action from the agency.
A Treasury spokeswoman says that the agency is committed to enforcing sanctions that protect national security but did not confirm the alleged investigation.
Marco Santori, Kraken’s chief legal officer, says that the company does not give comment on specific regulator discussions, but says that the exchange complies with sanction laws.
“Kraken closely monitors compliance with sanctions laws and, as a general matter, reports to regulators even potential issues.”
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/ittoilmatar
The post Crypto Exchange Kraken Under Investigation for Allegedly Allowing Iranian Sanction Evasion: Report appeared first on The Daily Hodl.
