Kraken Secures $22M Arbitration Award Against Former Auditor Mazars USA

Kraken has won a $22 million arbitration award against its former auditor, Mazars USA. The parent company of the crypto exchange, Payward, asked the Delaware Court of Chancery to enter judgment on the award.

Prior to withdrawing from Kraken's nearly completed 2022 audit, Mazars found no fraud and raised no concerns about management's integrity or reporting any disagreements with the company. Arjun Sethi, co-CEO of Payward, described Mazars' resignation as part of a broader campaign called Operation Chokepoint 2.0.

Sethi argued that this campaign pressured banks, auditors, and other institutions to cut ties with lawful crypto companies, citing regulatory developments in 2023, including joint guidance from US banking regulators and the collapse of crypto-focused banking networks Silvergate SEN and Signature's Signet.