The post Kraken parent firm Payward pursues legal action after $22M Mazars ‘vindication’ appeared on BitcoinEthereumNews.com.
Payward, the parent company of crypto exchange Kraken, has asked the Delaware Court of Chancery to enter final judgment against Mazars USA, moving to collect a $22 million arbitration award it won against the accounting firm that quit its audit in late 2023. A confidential arbitration, decided by a retired judge, produced the award. Kraken now asks the court to make that award enforceable. The dispute began in December 2023 when Mazars audited Kraken’s financial statements for three years and signed two clean opinions. The third audit, covering 2022, was days from completion when Mazars backed out. Mazars explicitly stated, in writing, that it had no disagreement with Kraken’s management, no doubts about the company’s integrity, and had found no fraud. Mazars tied its exit to legal risk, pointing to an SEC enforcement action filed against Kraken weeks before, pr
The post Kraken Seeks Delaware Judgment After $22M Arbitration Win appeared on BitcoinEthereumNews.com.
Payward, the parent company of crypto exchange Kraken, has won a $22 million arbitration award against former auditor Mazars USA and asked the Delaware Court of Chancery to enter judgment on the award, according to a letter published Tuesday by co-CEO Arjun Sethi. Payward said Mazars withdrew from the exchange’s nearly completed 2022 audit despite finding no fraud, raising no concerns about management’s integrity and reporting no disagreements with the company. “An audit is not a favor. It is oxygen,” Sethi wrote, arguing that independent audits are essential for obtaining banking services, licenses and other business relationships. Sethi said Mazars’ resignation was part of what he described as Operation Chokepoint 2.0, a broader campaign that pressured banks, auditors and other institutions to cut ties with lawful crypto companies. The letter cited a series of regulatory developmen
The post Kraken Seeks Final Judgment After $22 Million Award Against Former Auditor appeared on BitcoinEthereumNews.com.
Payward, the parent company of the cryptocurrency exchange Kraken, has asked the Delaware Court of Chancery to enter a final judgment against its former auditor, Mazars USA, after an arbitrator awarded the firm $22 million. The exchange disclosed the request on July 7 through an open letter from co-CEO Arjun Sethi and a series of posts from CEO Dave Ripley. The dispute traces to December 2023, when Mazars withdrew from Kraken’s 2022 audit days before its completion. Mazars had audited Kraken for three prior years and issued two clean opinions, according to the company. In writing, Sethi said, the auditor confirmed it had no disagreement with management, no concerns about the firm’s integrity, and no findings of fraud. Mazars attributed its resignation to legal developments, among them a complaint the Securities and Exchange Commission had filed against Kraken weeks
