Kraken Faces $900,000 Lawsuit by Jonathan Silverman

Wilfred Michael 

Wilfred Michael

News reporter

08 April 2019,
08:53
Kraken Faces $900,000 Lawsuit by Jonathan Silverman

US-based cryptocurrency exchange, Kraken, was named the defendant in an April 4 lawsuit filed by former employee, Jonathan Silverman.

According to a Bloomberg report about the matter, Silverman was brought in by Kraken in April 2017 to become the exchange's institutional sales and trading desk manager in New York until he left the position.

But Silverman claims that Kraken's CEO, Jesse Powell had failed to honor his promise to pay him a $150,000 salary and a 10% commission of the profits generated by the trading desk which he heads.

He claimed that the trading desk generated as much as $19 million in profits within the final three months of 2017 and the exchange owners never paid him the agreed commission nor other options promised him in stocks. As per the report, the unpaid salaries and compensations listed in the lawsuit amount to $907,631.

Additionally, the former employee claims that Kraken had been lying to the public all this while about not offering its services to New York residents after the firm labeled the State’s proposed BitLicense requirement for exchange operators as “abominable.”

While Kraken claims that it stopped offering its services to New York users since August 2015, Silverman's lawsuit alleges that the exchange's primary functions such as “OTC practice and OTC trading (including logging into the Kraken exchange and negotiating wire transfers) occurred almost exclusively in New York.”

Meanwhile, following the allegations against Kraken, a spokeswoman for the exchange, Christina Vee reportedly told Bloomberg that Jonathan Silverman “is both lying [in the lawsuit] and in breach of his confidentiality agreement.”

As Stmarket.co had reported in the past, the activity of cryptocurrency exchanges has come under public eye in different countries following multiple hacks and other ugly developments.

Canadian regulators recently released proposed rules for crypto exchanges while Pakistan enforced such regulations only last week.

 

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