NY Attorney General Warns Kraken Crypto Exchange and Two Others

NY Attorney General stated that some cryptocurrency exchanges might be operating illegally. A report was released highlighting the integrity of virtual markets.

New York newly appointed Attorney General Barbara Underwood released a report addressing the integrity of global crypto exchanges. In addition, the report lists several exchanges that might be breaking financial laws.

One of the crypto exchanges that appear in the list is San Francisco Company- Kraken. However, it was added to the list because it refused to participate in the report collated by the OAG.

In addition, the report warns that customers of respective platforms might see negative effects after the platform’s refusal to be transparent. The report adds that the platforms are possibly not disclosing a type of services offered to certain traders. Therefore, some traders could be getting an added advantage over other traders on the platform.

Other crypto exchanges on the list are Binance, Huobi, and Consequently, the office of the Attorney General has referred three of the aforementioned exchanges to the New York State Department of Financial Services. The OAG stated that the referred platforms-Kraken,, and Binance are likely violating New York State’s financial rules and regulations.

According to data from Coinmarketcap, Binance is currently the largest crypto exchange in the world with $9 billion daily volume. At the time of writing, Huobi is third with a volume of $625 million. However, Kraken which is 16th on the list is the most popular of the listed platforms in the US. Presently, Kraken has a daily market volume of $122 million.

Virtual Markets Integrity Initiative Report

The report released by the Office of the Attorney General was officially titled “Virtual Markets Integrity Initiative Report”. The report focused on five major areas:

  • Where do exchanges do business?
  • What are the trading policies of exchanges?
  • How these exchanges manage conflict of interest?
  • The security measures put in place by the platform?
  • How exchanges access consumer funds?

Also included are the exchanges that participated in the report. They include Bitfinex, bitFlyer, Bitstamp, Bittrex, Coinbase, Gemini, itBit, and Poloniex.

Further, the attorney general revealed that some crypto exchanges are using their funds to trade on their platform. One such platform is Coinbase which about 20% of its total market volume was linked to the exchange’s private trade.

Show More


Ifeanyi Egede is an experienced and versatile blockchain/crypto writer and researcher on with tons of published works both online and in the print media. He has close to a decade of writing experience. When he is not writing, he spends time with his lovely wife and kids. Learn more about how Ifeanyi Egede could be of help to your business.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also
Back to top button