Kraken in Talks to Buy Deribit as U.S. Agencies Demand User Data

San Francisco-based crypto exchange Kraken is making headlines again, but this time for two major reasons. While the company is constantly in talks with Deribit over its acquisition. At the same time, it is facing growing pressure from U.S. regulators, including the FBI and SEC, to share client data. 

Kraken Still Negotiating to Buy Deribit

Deribit, a major crypto options exchange, is still in discussions with kraken kraken - support@kraken.com Centralised ExchangeDecentralised Exchange regarding a potential acquisition. Despite reports suggesting Kraken had backed out, sources confirm the negotiations are still ongoing.

As per the sources, Deribit Exhcangs is valued between $4 billion and $5 billion, and remains a key player in the options market, making it an attractive target for expansion.

If Kraken successfully acquires Deribit, it could strengthen its position in the crypto derivatives market, giving it an edge over rivals.

Coinbase Joins the Acquisition Deal

Kraken is not the exchange interested in Deribit. Coinbase has also shown interest in acquiring the platform, adding more competition to the deal. However, Deribit’s CEO has clarified that the company is still evaluating multiple takeover bids, keeping its options open.

U.S. Regulators Turn Up the Heat

While pursuing an acquisition, Kraken is also under increasing scrutiny from U.S. regulators. The FBI and SEC are among several agencies requesting client data from the exchange in 2024.

A transparency report shows Kraken received 6,826 data requests from global authorities, with 57% coming from the U.S. The SEC, which previously sued Kraken for allegedly running an unregistered exchange, accounted for 37% of these requests. Other agencies, including the Commodity Futures Trading Commission (CFTC) and the Office of Foreign Assets Control (OFAC), have also demanded information from Kraken.

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Kraken’s Growth Despite Challenges

Despite regulatory challenges, Kraken’s business remains strong. The exchange reported $1.5 billion in revenue in 2024, marking a 128% increase from the previous year. 

While it faces hurdles in the US, Kraken’s expansion efforts, including a potential Deribit acquisition, could shape its future in the crypto industry.