$22M Damages Awarded to Kraken's Parent Company Amid Ongoing Crypto Debanking Concerns

Kraken's parent company Payward has won $22 million in damages from its auditor Mazars, stemming from an abandoned audit in 2023.

The audit was halted due to 'legal developments' linked to a SEC complaint, but the complaint was later dismissed with prejudice and no penalties were imposed.

Kraken co-CEO David Ripley said that Mazars was pressured into abandoning the audit, mirroring a broader trend against the crypto industry by the Biden administration.

Ripley noted that the targeted restriction did not stop at crypto auditors, but also affected banks and regulatory guidance, making it impossible for them to get into custody services.