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Crypto Exchange Kraken Sued By A Former Employee for Denying $900,000 Compensation

By Natalie Wu | April 8, 2019
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Crypto Exchange Kraken Sued By A Former Employee for Denying $900,000 Compensation

Jonathan Silverman, a former employee of Kraken crypto exchange, has filed a lawsuit against the firm for allegedly failing to pay him over $900,000 compensation for the job he managed.

Hired in April 2017 as a role of Trading Desk Manager, Silverman has been managing Kraken’s institutional sales and trading desk in New York. He signed an agreement with $150,000 salary with founder Jesse Powel, who also orally agreed to pay Silverman 10 percent of the desk’s annual profit. Kraken’s trading desk has generated over $19 million in a 3-month-period and Silverman said he has not received any commision as promised.

Powell has been well-known for his firm attitude towards government rules applying for cryptocurrency world. In 2018, the New York Attorney General has once requested Powell to submit Kraken’s information. The founder claimed that the exchange has not operated in New York for years and therefore, refused to comply to the state’s regulation. He also cited the post named “Farewell, New York”, which was published when the firm discontinued its service in New York in 2015.

Those statements now appear at the court against the exchange. David Silver, one of the attorneys representing Silverman, said: “Just 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.”

Also, in the fillings, Kraken is also reported to “misrepresent to the public and government regulators that it was not operating in New York; when in reality, Kraken’s OTC practice, and OTC trading (including logging into the Kraken exchange and negotiating wire transfers) occurred almost exclusively in New York.”

Christina Vee, spokesperson of Kraken, said Silverman “is both lying and in breach of his confidentiality agreement.”

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