Kraken Admits ‘Scams Are Rampant’ and Manipulation ‘Doesn’t Matter to Most Crypto Traders’

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In Brief
  • New York State Attorney General's Office Doesn't Take Kindly to Kraken's Refusal to Cooperate

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The New York State Attorney General’s office has concluded that cryptocurrency exchanges are open to market manipulation and do a poor job of protecting consumers, particularly when compared to established financial markets.

As reported by CNBC, the office published a 32-page report on Tuesday titled the “Virtual Markets Integrity Report,” which found a variety of issues in regards to “transparency, fairness, and security” in the world of cryptocurrency trading. Furthermore, there exists a serious lack of investor protections.

Unleash the Kraken

The inquiry was originally launched in April by former Attorney General Eric Schneiderman — who resigned following allegations of physical abuse from multiple women.

Ten cryptocurrency exchanges complied with the inquiry, while four politely (or not so politely) declined. High-profile exchange Kraken was one such exchange which fell into the latter category, with the CEO harshly tweeting:

Does Kraken Care?

The attorney general’s office did not roll over to Kraken’s insubordination.

Law Breakers

It is also worth mentioning that, as noted by CNBC, Kraken does not have a BitLicense — a requirement to provide services to New Yorkers. As such, Kraken (as well as Binance and may be breaking the law.

What do you think about the New York State Attorney General’s office’s report? Do you think Kraken should have complied with the inquiry? Let us know your thoughts in the comments below! While you’re at it, check out our unbiased Kraken review here


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After obtaining a Masters degree in Regenerative Medicine, Daniel pivoted to the frontier field of blockchain technology, where he began to absorb anything and everything he could on the subject. Daniel has been bullish on Bitcoin since before it was cool, and continues to be so despite any evidence to the contrary. Nowadays, Daniel works in the blockchain space full time, as both a copywriter and blockchain marketer.

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