Kraken's parent company, Payward, has won a significant arbitration award against former auditor Mazars USA for millions in damages due to the latter’s withdrawal from Kraken's audit. This move highli
Payward, the parent company of cryptocurrency exchange Kraken, recently secured a $22 million arbitration victory over its former auditor Mazars USA. In a letter published by co-CEO Arjun Sethi, Payward alleged that Mazars’ withdrawal from Kraken's nearly completed audit in 2022 caused substantial financial harm and was part of what he termed 'Operation Chokepoint 2.0,' a broader campaign targeting crypto companies.
According to Sethi’s letter, Mazars withdrew despite finding no fraud or issues with management integrity. This decision reportedly tied Kraken to regulatory pressures that led to the closure of several crypto-focused banking networks in 2023, such as Silvergate and Signature's Signet. The dispute also prompted Payward to call for Congress to pass the CLARITY Act, aiming to provide clearer regulations for digital asset companies.
Kraken co-CEO Dave Ripley emphasized that this was part of a coordinated campaign against the crypto industry during an era marked by intense regulatory scrutiny and pressure from traditional financial institutions. He noted that only a fraction of these stories had been told publicly before. Meanwhile, US regulators continue to address concerns around crypto-related debanking efforts.
Kraken's ongoing legal battles reflect broader tensions in the cryptocurrency sector as exchanges navigate increasingly complex regulatory landscapes. The company has faced challenges including weaker market conditions and cost-cutting measures since its confidential submission of an IPO registration statement in November 2025, which may delay its public debut until at least 2027.
This arbitration win underscores the importance of independent audits for crypto exchanges seeking banking services and licenses. It also highlights ongoing efforts to clarify regulatory frameworks that could impact the industry's future growth and stability.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.