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

Kraken's parent company, Payward, has secured a $22 million arbitration award against its former auditor Mazars following a dispute over a halted 2022 audit. The ruling comes after Payward claimed that Mazars unilaterally stopped its audit work just as it was nearing completion, causing significant financial harm.

Payward argued that an audit is essential for corporate survival, comparing it to 'oxygen for corporate survival.' The company stated that the audit was necessary for accessing banking services, obtaining licenses, and maintaining critical business relationships. Mazars' decision to walk away, according to Payward, was part of a broader pattern of pressure on the crypto industry.

The case highlights ongoing tensions between cryptocurrency firms and traditional financial and auditing institutions. Kraken co-CEO Arjun Sethi has now petitioned a Delaware court to confirm the arbitration award, moving to enforce the decision legally.