A former employee of the popular U.S.-based cryptocurrency exchange Kraken, has initiated legal proceedings against the company in connection with the breach of the contract and the violation of the penalties, as well as other important issues raised during the prosecution.
According to a court document filed last November 26, Nathan Peter Runyon – a seafaring veteran and former employee of the investment company Kraken, where he worked as a financial analyst under the chief financial officer of the exchange Kaiser Ng – brought the case to court. accusing the company and Ng of a series of legal violations and falsifications.
A series of heavy charges
In particular, Runyon accused Kraken of unethical and illegal commercial tactics, deceiving his employees for their stock options, sanctioning the violation, discrimination against him as a disabled military veteran and false addresses of company officers.
During his work in the brokerage firm Kraken, as of August 2018, Runyon allegedly came across multiple questionable commercial tactics, about which the company allegedly earned revenue from U.S. countries, with designated citizens and individuals. blocked by the Treasury Department.
Runyon claimed that Kraken's bank balances had been short of client deposits worth millions of dollars. Kraken allegedly did not conduct performance assessments, as modified stock options grant vesting plans without modification.
In addition, Ng allegedly asked Runyon if he could use Runyon's home address for questions for banks and regulators. Runyon agreed, however, the company should not have paid the rent for using his apartment.
Runyon informed Ng of his findings, but Ng would have ignored all of them and excluded Runyon from the project. The court filing presents a number of other Runyon charges against Kraken.
The cleanest exchange in the industry?
According to a Blockchain market surveillance report, Transparency Institute, released in late September, Kraken is among the cleanest cryptocurrency exchanges in the industry. The report states that:
“However, at the end of the second quarter of 2019, a Bloomberg report found irregularities involving certain Tether (USDT) trades on the Kraken exchange. John Griffin, a professor of finance at the University of Texas, told Bloomberg that the irregularities found are "suggesting so-called wash trading."
This technique is sometimes used by traders, who act both as a seller and as a buyer in a given transaction, to give a false impression of supply and demand. This act in itself is illegal. Kraken discredited the contents of the report in a blog post. "It is not clear what damage could result from the wash trading of an asset anchored to its pegging," Kraken wrote internally.
In the meantime, however, Runyon's lawsuit is real and only time will tell us how it will end. However, we know how these things go and a response could certainly arrive not in a very short time.