Home News Exchange Former Employee of Kraken Demands $900,000 as Compensation

Former Employee of Kraken Demands $900,000 as Compensation

April 08, 2019 12:14
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A former employee of cryptocurrency exchange, Kraken has filed a lawsuit against the company and has demanded nearly $900,000 as compensation. The ex employee who was their trading desk manager has allegedly filed a lawsuit against them for failing to pay him the promised 10% commission of the trading desk’s annual profit during his 3 months tenure.

The former employee Jonathan Silverman, demanded the compensation for more than $19 million profits the desk generated when he was in charge, as reported by news portal, Chepichap.

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However, the compensation that he is demanding for is slightly more than what the exchange had agreed to pay him. Kraken had earlier agreed to pay him around $907,631, after he left the company. Silverman accused the company of refusing to pay the lump sum amount, whereas a representative of the company, Christina Vee said, “Silverman was both lying and in breach of his confidentiality agreement”.

According to the lawsuit, Kraken had been “misrepresenting 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.”

Recently, Kraken was in the news when it announced new security measures in order to circumvent possible external breaches. At the time, the exchange’s Chief Security Officer, Nick Percoco, had said, “Today, we are enhancing the client security experience by requiring the use of Two Factor Authentication (2FA). We’ve had 2FA available to our clients since our launch in September of 2013, but starting today, clients will be asked to enable it upon their next login. Currently, the prompted options for 2FA are Google Authenticator and YubiKey.”

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