Key facts
- Kraken's parent company, Payward, won a $22 million arbitration award against former auditor Mazars USA.
- Payward is asking a Delaware court to enter judgment on the award.
- Kraken claims Mazars withdrew from its 2022 audit without cause, causing millions in damages.
- Kraken alleges the withdrawal was part of Operation Chokepoint 2.0, a campaign against crypto firms.
- Kraken executives described the dispute as a coordinated campaign against the crypto industry.
Payward, the parent company of cryptocurrency exchange Kraken, is seeking a final judgment from the Delaware Court of Chancery to enforce a $22 million arbitration award against its former auditor, Mazars USA. Kraken alleges that Mazars' withdrawal from the exchange's nearly completed 2022 audit, despite finding no fraud or integrity concerns, caused millions in damages.
Kraken co-CEO Arjun Sethi stated that Mazars' resignation was part of a broader campaign he described as Operation Chokepoint 2.0, which pressured institutions to sever ties with crypto companies. He cited regulatory actions in 2023, including joint guidance from US banking regulators and the collapse of crypto-focused banking networks, as evidence. Sethi also urged Congress to pass the CLARITY Act to establish a clearer market structure framework for digital asset companies.
Kraken co-CEO Dave Ripley echoed these sentiments, calling the arbitration award compensation for financial harm from a coordinated campaign against the crypto industry. He noted that only a fraction of the stories from that era have been told. Meanwhile, US regulators are addressing concerns around crypto debanking, with the Federal Reserve seeking feedback on removing 'reputation risk' from bank supervision, a move critics believe could end Operation Chokepoint 2.0.
Kraken, founded in 2011, has been widely expected to pursue an initial public offering. The company confidentially submitted a draft S-1 registration statement in November 2025, but its public debut may be delayed until 2027 due to weaker crypto market conditions and ongoing cost-cutting efforts.