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Former Kraken Employee sues Exchange. demands $900,000 payment


Jonathan Silverman, a former Kraken employee, has recently filed a case against cryptocurrency exchange Kraken, as the failed to pay him for his work. Per the lawsuit he has demanded a compensation of over $900,000.

The news was announced by leading news media mogul Bloomberg. According to the report, Silverman was responsible for managing Kraken’s institutional sales and trading desk in New York and was agreed to be paid $150,000 in salary by Jesse Powell, the exchange’s CEO. Furthermore, he was also promised 10% of the desk’s annual profit. 

Silver man further alleges that the trading desk garnered over $19 million profits in three months, back in 2017. He said he didn’t recieve either the 10% commission or any additional promised stocks. 

Christina Vee, a spokeswoman for Kraken, was quoted as saying: [Silverman] is both lying and in breach of his confidentiality agreement.

Kraken in early 2015 had announced via a blog post, about the exchange discontinuing its service in the state of New York, over the controversial BitLicense, introduced by Department of Financial Services. 

Per Bloomberg, Kraken did cease operations in New York and claims that the exchange is “misrepresenting to the public and government regulators that it was not operating in New York.”. The report further notes that Kraken’s over-the-counter (OTC) trading occured solely in New York. Powell is famous for his straightforward stance regarding BitLicense and New York regulators approach to the crypto space. 

Last year, when the New York Attorney General launched an inquiry into cryptocurrency exchanges under the pretense of protecting consumers, citing scams and other security problems. At the time, Kraken slyly fired back.

In an emailed statement to Bloomberg David Silver, one of the attorneys representing Silverman, stated that

 “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.”

Bloomberg further adds that when Silverman left Kraken, he signed an agreement with the firm for which he would recieve $907,000 settlement, which the lawsuit alleged Kraken refused to pay. 

About Kraken Exchange

Kraken is a US-based cryptocurrency exchange, founded in 2011. In September 2013, Kraken launched after two years of testing and development. The exchange initial offered Bitcoin, Litecoin, and Euro trades. Additional currencies and margin trading was later added. In October 2013, Kraken formed an exclusive partnership with BaFin regulated Fidor bank. Fidor provides Single European Payments Area (SEPA) payments for depositing and withdrawing from Kraken accounts.