Kraken Wins $22 Million Arbitration Against Auditor Over Operation Choke Point 2.0 Exit
Crypto exchange Kraken has been awarded $22 million in arbitration against its former auditor Mazars after the firm abandoned a near-complete audit during the period known as Operation Choke Point 2.0. The case highlights the broader regulatory pressure campaign waged against crypto firms during that period. The outcome may carry implications for accountability in the crypto auditing space.
Kraken's operating entity, Payward, filed an arbitration claim against audit firm Mazars after the firm walked away from an engagement that was nearly finished, coinciding with the coordinated U.S. regulatory pressure on crypto firms referred to as Operation Choke Point 2.0.
The arbitration panel ruled in Kraken's favor, awarding the exchange $22 million in damages. The case establishes a precedent for crypto firms that suffered direct financial or operational harm when service providers withdrew under apparent regulatory pressure.
While this story centers on Kraken rather than Ripple or XRP directly, it is relevant context for XRP holders because Operation Choke Point 2.0 affected multiple crypto firms including those with ties to the XRP ecosystem, and the outcome signals that legal recourse for that era of pressure is now being pursued and won.
The Mazars firm had previously withdrawn from auditing several crypto clients in late 2022, drawing criticism at the time for leaving companies without completed financial disclosures. This ruling puts a concrete dollar figure on the cost of that withdrawal for at least one major exchange.
Key facts
- •Kraken's entity Payward won a $22 million arbitration award against Mazars
- •Mazars abandoned a near-complete audit during Operation Choke Point 2.0
- •The case was resolved through arbitration, not court litigation
- •Mazars withdrew from multiple crypto audit engagements in late 2022
- •The ruling establishes financial accountability for service provider withdrawals under regulatory pressure