Kraken wins $22M arbitration against former auditor Mazars

The crypto exchange's parent company says Mazars' withdrawal from its 2022 audit caused millions in damages and tied the dispute to Operation Chokepoint 2.0.

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.

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