Why did Payward, the parent company of Kraken, seek arbitration against Mazars USA?

Payward, the parent company of Kraken, sought arbitration because it said Mazars USA withdrew from its nearly completed 2022 audit without finding fraud, reporting management concerns or identifying disagreements with the company. Payward was awarded US$22 million in arbitration for the financial harm it said resulted from the withdrawal.

What does the US$22 million arbitration award mean for Payward, the parent company of Kraken?

Payward, the parent company of Kraken, received a US$22 million arbitration award and has asked the Delaware Court of Chancery to enter judgment on the decision. The award relates to the company's claim that Mazars USA's withdrawal from its 2022 audit caused financial losses.

How is Payward, the parent company of Kraken, linking the dispute to Operation Chokepoint 2.0?

Payward, the parent company of Kraken, said the auditor's resignation was part of what it described as Operation Chokepoint 2.0. The company pointed to 2023 banking guidance, the rescinded Staff Accounting Bulletin No. 121 and the closures of Silvergate's SEN and Signature's Signet as supporting examples.

What does Payward, the parent company of Kraken, say the CLARITY Act would mean for its business?

Payward, the parent company of Kraken, said the CLARITY Act would create a clearer market structure for digital asset companies. The company said this could reduce reliance on regulatory enforcement, although that remains its stated expectation rather than a confirmed outcome.

What are Payward, the parent company of Kraken, planning for a potential public listing?

Payward, the parent company of Kraken, confidentially submitted a draft Form S-1 registration statement in November 2025 for a potential US initial public offering. Reports in May said the listing may be delayed until 2027 because of weaker cryptocurrency market conditions and ongoing cost-cutting efforts.

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Kraken wins $22M Mazars arbitration award

Written by Brie CarterPublished Jul 7, 2026, 11:20 PM

Payward, the parent company of Kraken, won a US$22 million arbitration award against former auditor Mazars USA.
The company said Mazars' withdrawal from its 2022 audit caused financial harm despite no reported fraud or management concerns.
Kraken executives said the case supports their call for clearer US cryptocurrency regulation through the CLARITY Act.

Payward, the parent company of Kraken, announced it had won a US$22 million arbitration award against former auditor Mazars USA and asked the Delaware Court of Chancery to enter judgment on the award.

Payward said Mazars withdrew from its nearly completed 2022 audit despite finding no fraud, reporting no concerns about management integrity and identifying no disagreements with the company.

"An audit is not a favor. It is oxygen," said Payward co-chief executive Arjun Sethi.

Sethi said Mazars' resignation formed part of what he described as Operation Chokepoint 2.0, citing 2023 banking guidance, the rescinded Staff Accounting Bulletin No. 121 and the closures of Silvergate SEN and Signature Signet while also calling on Congress to pass the CLARITY Act.

Payward said the arbitration award reflects financial losses linked to the auditor's withdrawal, and following the announcement the Kraken share price was unavailable because the company is privately held.

Kraken co-chief executive Dave Ripley said the award compensated the company for financial harm that he alleged resulted from coordinated pressure on cryptocurrency businesses, while the US Federal Reserve has since proposed removing "reputation risk" from bank supervision.

Kraken confidentially submitted a draft Form S-1 registration statement for a potential US initial public offering in November 2025, although reports in May said the listing may be delayed until 2027 because of weaker cryptocurrency market conditions and ongoing cost-cutting efforts.

Kraken wins $22M Mazars arbitration award

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Kraken wins $22M Mazars arbitration award

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