Kraken witnessed 475 disclosure requests from govt agencies in 2018
Kraken, a crypto trading platform, has released data regarding the number of law enforcement requests it received since 2015 from around the globe. The data indicates that the requests surged close to 500 in 2018. The exchange also signified that the majority of these requests were from U.S law enforcement agencies.
The details presented in an infographic posted on Twitter posted by San- Fransisco based Kraken denotes that the exchange received 475 subpoenas from governmental bodies in 2018. Of these requests, 315 were from US agencies. The largest number of requests were from the FBI [Federal Bureau of Investigation] followed by Homeland Security Investigations and the Drug Enforcement Authority.
The requests in 2018 were up over 100% when compared to 2017.
“You can see why many businesses choose to block US users. Cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry,” said the exchange. This is a perfect example of regulatory pressure taxing the performance of a crypto company.
In April 2018, Jesse Powell, Kraken CEO, refused to co-operate with the New York Attorney General’s Inquiry into Cryptocurrency Exchanges. “Having the kind of requested information “on hand” is not the same as having the resources to compile it neatly to fit the framework of the request, within 2 weeks,” said Mr. Powell at the time. “If you want to talk to us, ask us for a phone call, fly yourself out to San Fransisco, invite us for lunch at your office,” he added.
Kraken was also in the headline in December 2018 for alleged manipulation of Bitcoin Cash network. The plaintiff, United American Corp accused Kraken, Bitcoin.com, Bitmain and Roger Ver of using unfair trade practices to manipulate Bitcoin Cash network for their benefit.
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