FBI requests threaten to cripple Kraken exchange

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FBI bitcoin

One of the world’s largest Bitcoin exchanges has revealed the staggering number of law enforcement requests it received in 2018.

San Fransisco-based, Kraken, which operates in Canada, the EU, Japan, and the US, received 475 subpoenas from authorities in 2018.

The 2018 figure is up almost 100% compared to the number of subpoenas it received in 2017.

Of those 475 law enforcement requests, 315 were from US authorities.

The largest number of request made by the FBI, followed by Homeland Security Investigations and the Drug Enforcement Authority.

The details have been revealed in an infographic released by Kraken today.

FBI Bitcoin
Infographic released by Kraken (https://twitter.com/krakenfx)

“Peek at our compliance team’s 2018 Transparency Report,” wrote Kraken on Twitter.

“You can see why many businesses choose to block US users.

“Cost of handling subpoenas (regardless of licenses) is quickly becoming a barrier to entry.”

Kraken says US laws prevent it from informing users when authorities request information about their transactions.

“It is usually prohibited as the requests come as part of an open investigation.”

In April 2018 Kraken Co-founder and CEO, Jesse Powell, made headlines after refusing to co-operate with the New York Attorney General’s Inquiry into Cryptocurrency Exchanges.

“Having the kind of requested information “on hand” is not the same as having the resources to compile it neatly to fit to the framework of the request, within 2 weeks,” said Mr. Powell at the time.

“If you want to talk to us, ask us for a phone call, fly yourself out to San Fransisco, invite us for lunch at your office.”

America’s only independent ratings agency predicts Bitcoin will reach new all-time highs in 2019. Click here to read the article on Micky.