Kraken’s parent wins $22M arbitration over auditor exit

Payward, Kraken’s parent, won $22M in arbitration after Mazars USA withdrew from a 2022 audit, causing operational issues. Payward seeks court enforcement amid growing regulatory pressures.

Payward, the parent company of crypto exchange Kraken, has won a $22 million arbitration award against its former auditor, Mazars USA. The dispute arose after Mazars abruptly withdrew from a nearly completed 2022 audit, citing legal risks following an SEC enforcement action. Notably, Mazars had found no fraud, management issues, or disagreements with Kraken before its exit. Mazars’ sudden withdrawal created significant operational and licensing challenges for Kraken, particularly impacting its acquisition of TradeStation Crypto and its ability to obtain state approvals. In response, Payward has asked the Delaware Court of Chancery to confirm the arbitration award and facilitate the collection of damages. This case highlights the increasing regulatory and institutional pressures facing crypto firms. Payward has called for clearer legislation to prevent service providers from abandoning the industry. Kraken has since received clean audits and is pursuing further expansion, including a European banking license.