Former Employee to Sued Kraken

Jonathan Silverman believes that exchanges owns him almost one million dollars
08 April 2019   374

Jonathan Silverman, a former employee of one of the oldest Bitcoin exchanges Kraken, filed a lawsuit against it, accusing that the platform management did not pay him for the work he had done. This is reported by Bloomberg.

According to the lawsuit filed on April 4, Kraken hired Silverman in April 2017 as manager of institutional sales and trading in New York. In agreement with the main exchange, Jess Powell, Silverman was paid a salary of $ 150,000 per year, but the plaintiff also claims to have a verbal agreement that the exchange will pay him 10% of the annual profit of the trading department.

According to Silverman, for three and a half months in 2017, this area of ​​activity brought Kraken more than $ 19 million, but he never saw the promised commissions of $ 907,631. Representatives of the San Francisco-based exchange are categorically denied the charges.

[Silverman] is both lying and in breach of his confidentiality agreement. 

Christina Vee

Spokeswoman, Kraken

In April 2018, after the request of the former Attorney General of New York, Eric Schneiderman, demanding the disclosure of information about the activities of the largest exchanges, Kraken refused to cooperate with the state. Earlier, in 2015, the exchange announced it would cease operations in the state of New York, refusing to apply for a BitLicense.

In his lawsuit against the exchange, Jonathan Silverman disputes this, arguing in particular that, contrary to all public statements, the activity of the Kraken OTC platform is almost entirely conducted in New York.

Just because some people in the cryptocurrency space don’t believe the rules apply to them doesn’t mean that’s the way things actually work.

David Silver

One of the attorneys representing Silverman

In 2018 the number of requests of various government structures to the Kraken exchange in 2018 increased threefold - from 160 to 475. In particular, requests to clarify certain aspects of the exchange’s work were sent by the Bureau of Investigations of the National Security Agency, the FBI, the Office of drug control, as well as financial regulators in the face of the SEC and CTFC.

Kraken to Raise $13.5 Thru BnkToTheFuture

2,263 people with an average investment of $100.000 took part in crownfunding campaign, which became record for the platform
25 June 2019   164

The US Bitcoin exchange Kraken raised $ 13.5 million through the sale of private equity through the investment platform BnkToTheFuture (BF). This was the most successful round of financing from individual investors in the history of BF, reports CoinDesk.

So, in total Kraken crowdfunding campaign was attended by 2,263 people with an average investment of $ 100 thousand. The funds raised are probably used by the exchange to make new acquisitions.

It is noteworthy that BF created a subsidiary, which became the recipient of individual investments in order to subsequently act as a single investor for Kraken. This allowed the exchange to bypass the requirements of the US Securities and Exchange Act and not to go to an IPO.

It is noteworthy that Kraken initially intended to raise $ 10.2 million, but the demand for its shares turned out to be higher and the exchange extended the fundraising period.

According to Kraken's own estimates, its capitalization is $ 4 billion.

Earlier this year, the exchange also acquired Crypto Facilities, a trading platform for cryptocurrency derivatives, expanding the range of services offered.