Kraken Co-CEO apologizes for intrusive Monero withdrawal inquiries

Kraken Co-CEO Arjun Sethi has admitted that the cryptocurrency exchange sent unjustified compliance inquiries to Monero (XMR) customers. The emails, which requested sensitive information including employers, sources of funds, and the intended use of the coins after withdrawal, were described by Sethi as “wrong” and “unacceptable.”

Sethi explained that the inquiries were triggered by an internal assessment that flagged a young customer with substantial funds as a suspicious activity. He rejected this reasoning, stating that a customer’s age and wealth do not automatically constitute a red flag. While Sethi maintained that questioning the source of funds is a legitimate part of anti-money laundering protocols, he argued that inquiring about a user's plans for their assets once they leave the platform exceeds reasonable oversight.

Kraken has officially withdrawn the disputed requests and informed affected users that they are no longer required to provide the requested information. Despite the controversy, the exchange confirmed that Monero will remain listed and available for trading on its platform.