Former Trading Desk Manager Sues Kraken for $ 900,000 for alleged failure to pay

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A former employee of the US-based crypto exchange Kraken is suing the company for more than $ 900,000 claiming that the exchange did not pay him for his work there. Bloomberg reported the news on April 7.

Jonathan Silverman – allegedly joined the exchange for managing institutional sales and the trading desk in New York in April 2017 – claims he has reached an oral agreement with founder Jesse Powell to receive a $ 150,000 salary , as well as a commission of 10% of the trading desks annual profit.

In his lawsuit filed in New York on April 4, Silverman allegedly claimed that the trading desk raised more than $ 19 million in profit for three months in 2017, but that he has neither the commission nor the allegedly additional stock options promised receive.

Bloomberg notes that a Kraken spokesperson, Christina Vee, said that Silverman "both lies and violates his confidentiality agreement."

Silverman's figure roughly fits in with similar failure-to-pay claims in a separate lawsuit by one-off Kraken employee Robert Adler, who claimed that the New York trading desk earned $ 19 million between September 15, 2017 and the end of that year .

After leaving the company, Silverman claimed that he reached an agreement with Kraken that would pay him $ 907,631 as a lump sum settlement. The platform has nevertheless refused to make the payment, his lawsuit claims.

The Silverman process goes deeper than an alleged violation of personal agreements, as Kraken is allegedly accusing the following:

"Misrepresentation to the public and government regulators that it did not work in New York; in reality, Kraken's OTC practice and OTC trade (including logging in to the Kraken exchange and negotiating bank transfers) happened almost exclusively in New York City. "

Bloomberg reports that Silverman was one of the at least two who reportedly worked at Kraken & # 39; s New York trading office.

Bloomberg further cites a 2018 New York Attorney General report on crypto exchanges in which Kraken is considered one of the platforms that is claimed to operate internal trading desks that buy and sell in their own market – in addition to Bitfinex, bitFlyer and Poloniex.

Richard Johnson, an analyst at Greenwich Associates, called the alleged practice a "dirty little secret of the crypto-exchange world," said Bloomberg.

As previously reported, Kraken stopped offering services to NY residents in 2015, and the state's crypto regulatory regime called the creature so filthy, so cruel that even Kraken does not have the courage or the strength to face his nasty, large, pointed teeth. "

In the fall of 2018, the controversy over the alleged operations of Kraken surfaced, when California's headquarters chose not to respond to a request for information from the New York Attorney General and reiterated that it is not operating illegally in New York .

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Don Bradman

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