Kraken to Refuse to Answer NY's Attorney General's Inquiry

Kraken was one of 13 exchanges that received a letter from New York Attorney General as part of his new inquiry into cryptocurrency exchanges
19 April 2018   945

Kraken does not intend to respond to the request of the Attorney General of the State of New York. This is reported by Coindesk.

Kraken was among the 13 exchanges that received a letter from Eric Schneiderman. Although most of the trading platforms supported the initiative of the attorney, Kraken decided to take a different position from them.

Kraken's BitLicense-prompted exit from New York in 2015 pays another dividend today. I realized that we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet.

Jesse Powell

CEO, Kraken

Kraken left New York in 2015 due to the fact that this state adopted a set of rules for crypto-currency companies called BitLicense. The Exchange called the ruling "a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth."

Powell added that Kraken is ready to cooperate with the government, but condemns Schneiderman's approach.

Why don't you try extracting this information from those businesses actually operating in your state?

Jesse Powell

CEO, Kraken

Attorney's spokeperson provided a comment:

Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is basic information that credible platforms should all have on hand.

 Attorney General's office spokeperson

The set of BitLicense rules turned out to be ineffective, as most crypto-currency companies found it inadequate and simply refused to continue operatng in New York. In February, lawmakers raised the issue of revising or even completely abolishing BitLicense.

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   478

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.