Kraken appoints the former United States Attorney as their general legal counsel

The US-based cryptocurrency exchange Kraken has appointed Mary Beth Buchanan the former United States Attorney for the Western District of Pennsylvania, to serve as their general legal counsel.

Mary Beth Buchanan was the first women and the youngest person from Pennsylvania to be appointed as the US Attorney nominated by former President George W. Bush. She had continuously held two major positions in the US Justice Department. By the time she resigned, she was the Acting Director of the Department of Justice’s Office on violence against women.

The US-Based cryptocurrency exchange is running operations in Canada, Japan, United States, and the European Union. When it comes to volume and liquidity in terms of Euro, Karken is the world’s largest cryptocurrency exchange.

Mary Beth Buchanan was previously working in the international legal firm Bryan Cave but she is going to work out of New York, given that the CEO of Kraken had fiery response to probe into the operations of cryptocurrency exchanges by the New York Attorney General [NYAG].

The CEO of Karken, Jesse Powell responded:

“Someone has to say what everyone was thinking about the NYAG’s inquiry, they acted in an excessively subservient manner towards this kind of abuse sends the message which it’s okay. It’s not okay. It’s insulting”

The New York Attorney General’s office is investigating 13 cryptocurrency trading platforms including Kraken which doesn’t operate in the state. Barbara Dale Underwood is currently serving as the New York Attorney General as the former AG Eric Schneiderman has resigned due to allegations of physical abuse.

Last Thursday, the Department of justice [DOL] had begun investing the allegations of market manipulation on various cryptocurrency exchanges. The state-level authorities have not been the only ones who are closely investigating into cryptocurrency exchanges. A lot of cryptocurrency exchanges are building their own legal teams to defend themselves in time of need such as security regulation and anti-money laundering compliance.

Even though the investigation is still in its primary stages, reports suggest specific instances of “spoofing” in which traders sent false orders to trick others into purchasing or the sale of a particular asset or commodity. The authorities filed probe into “wash trading”, a process in which exchange platforms or other participants of the market artificially inflate trading volume by repeatedly making the buy and sell orders to their own personal advantage.

Karken is still going to pursue registration with the Securities and Exchange Commission [SEC] as a broker-dealer and an alternative trading system [ATS] despite the rising attention the firm is going to bring from the NYAG.

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