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Bitcoin Exchange Kraken Amid Legal Chaos, Sued by Ex-employee- Report

Recent reports revealed that one of the former employees of Kraken Bitcoin exchange sued the platform for the failure of committed payment when he joined.

Kraken Exchange Stuck at Lawsuit Filed by Former Trading Desk Manager

Per the suit filed on April 04 in New York, Kraken CEO allegedly promised to pay $150000 in salary and oral commitment to pay 10% of the Kraken trading desk’s annual profit to an employee ‘Jonathan Silverman’. He was hired as Kraken trading desk manager in April 2017.

As per the reports, Silverman was the oldest employee of Kraken exchange who claimed that trading desk earned over $19 million in profits within three months in the year 2017 and as promised, there was no such profit percentage shared with him. Upon failure, Jonathan Silverman has filed suit against Kraken and demanding compensation over $900,000.

However, the suit is filed in NewYork, but Kraken CEO Jesse Powell earlier told that the firm doesn’t adhere to New York rules, adding that it hasn’t operated in the state for years.

Talking about Silverman’s suit, a spokeswoman for Kraken, Christina Vee disagreed to his claim and said;

Silverman is both lying and in breach of his confidentiality agreement,”

It’s, however, worth to note that ‘NewYork lawfully demand existing exchanges in the state to hold BitLicense to operate within the territory. As a response to this rule of BitLicese issued by the New York State Department of Financial Services (NYSDFS), Kraken CEO shared a tweet of the company’s decision to move away from New York as well as published a detail blog post in April 2018, entitling “Farewell, New York”. The blog reads;

“Regrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth,”

Moreover, on the company’s stance of not operating at New York, the Silverman mentioned in the filing that the company is ‘misrepresenting to the public and government regulations’. The filing reads that Kraken is misrepresenting that it wasn’t operating in NY;

When in reality, Kraken’s OTC practice and OTC trading (including logging into the Kraken exchange and negotiating wire transfers) occurred almost exclusively in New York,” Silverman said

So as for now the filing isn’t clear yet but one of the attorneys representing Silverman, David Silver argued Powell’s statement;

“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,”

What do you think about Powell’s outspoken statement and ex-employee’s claim? Let us know

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