Even though it is a very innovative and emerging industry, the crypto industry does go through many of the usual commotions of any business sector and this includes frauds, scams, lawsuits and so on. However, it should be noted that crypto-related firms are under a particular brand of scrutiny since there is some level of distrust towards crypto in the world as well as from regulatory bodies even as proper cryptocurrency-related regulations have been implemented around the world. As this goes on, crypto-related companies continue to be under more scrutiny than ever.
US-based crypto exchange Kraken is about to be under even more scrutiny as they have recently been sued by a former employee for breach of contract and sanctions.
See You in Court
The lawsuit was filed on November 26, 2019, by an individual named Nathan Peter Runyon who is a former Kraken employee as well as a former veteran. At a certain point in time, he had worked under Kaiser Ng, who is the chief financial analyst at Kraken and is now suing both him and the company for contract breach and various violations.
The official documents state that he has brought a number of accusations against Kraken such as violation of business practices, faking of company office addresses, discrimination against him as a disabled war veteran, cheating employees out of stock bonuses and so on. Runyon had been working for Kraken from August 2018 and saw a number of shady activities take place such as the company earning revenue from people that were on the U.S. Department of the Treasury’s Office of Foreign Assets Control Specially Designated Nationals and Blocked Persons List.
Besides this, he claims that Kraken was often short on employee deposits to the tune of millions of dollars and also failed to perform any of valuations of employee performances and also used his home address for applying for bank services but did not pay him for the rent of the space. He brought all these to the attention of the chief financial officer but instead was excluded from the project.