Crypto exchange Kraken is reportedly under federal investigation for allegedly violating a US sanction against Iran.
The US has imposed restrictions on activities with Iran following the hostage crisis at the American embassy in Tehran in 1979.
As a result, US-based businesses are not allowed to buy or sell goods to anyone in the Middle Eastern country.
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Kraken is reportedly suspected of violating this sanction.
Citing unnamed people affiliated with the exchange or who are familiar with the matter, The New York Times reports that the Treasury Department’s Office of Foreign Assets Control (OFAC) has been investigating Kraken since 2019 for allegedly allowing Iran-based users to buy and sell digital assets.
The OFAC administers and enforces the economic and trade sanctions imposed by the US.