Kraken Parent Wins $22M Arbitration Case Against Former Auditor Mazars

Payward, the parent company behind crypto exchange Kraken, has secured a $22 million arbitration award against former auditor Mazars USA. The company has now asked the Delaware Court of Chancery to formally enter judgment on the ruling, according to a letter shared Tuesday by co-CEO Arjun Sethi.

Auditor Walked Away Mid-Audit, Kraken Says

Payward said Mazars pulled out of Kraken’s nearly finished 2022 audit even though the review had found no signs of fraud, no concerns about management and no reported disagreements with the company. Sethi called the move damaging, writing that audits are not optional for companies trying to secure banking relationships and licenses.

Sethi linked Mazars’ exit to a wider pattern he described as Operation Chokepoint 2.0, a campaign that pushed banks and auditors to distance themselves from crypto firms. He pointed to 2023 regulatory actions, including guidance from banking regulators, the SEC’s now-withdrawn Staff Accounting Bulletin 121, and the shutdown of crypto banking networks Silvergate SEN and Signature’s Signet, as supporting evidence.

Executives React, IPO Still Pending

Co-CEO Dave Ripley called the payout compensation for damage caused during that period and said many similar stories remain untold. Sethi also urged Congress to pass the CLARITY Act for clearer crypto rules. Kraken filed a draft IPO registration in November 2025, though a public listing may not arrive until 2027.