Kraken wins $22M arbitration against former auditor Mazars
Payward, Kraken’s parent, won a $22 million arbitration award against former auditor Mazars USA and asked the Delaware Court of Chancery to enter judgment on it. Kraken says Mazars pulled out of a nearly finished 2022 audit despite finding no fraud, no concerns about management integrity, and no disputes with the company. Co-CEO Arjun Sethi said the episode shows how vital audits are for banking, licensing, and business access, and argued it reflected “Operation Chokepoint 2.0,” a pattern of pressure on banks and service providers to sever ties with lawful crypto firms. Kraken pointed to 2023 regulatory actions and the collapse of crypto-friendly banking networks as evidence. Sethi also urged Congress to pass the CLARITY Act to create clearer digital asset rules and reduce reliance on enforcement. Co-CEO Dave Ripley called the award compensation for harm caused by a coordinated campaign against crypto.
