Kraken co-founder is happy for DOJ’s crackdown on Binance & CZ

On Nov 24, 2023

Kraken crypto exchange co-founder Jesse Powell is celebrating the US authority’s crackdown on the Binance Crypto exchange and explains why Binance faced this big level of legal action.

Binance is a top-ranked crypto exchange. Just a few days ago, the Binance exchange agreed to pay $4.3 billion as a fine for providing crypto services without registering with the corresponding regulatory body in the jurisdiction. Binance co-founder Changpeng Zhao (CZ) also resigned from the Binance CEO role and paid a $50 million fine as a part of the settlement.

On 23 Nov 2023, Kraken co-founder Jesse Powell took to X (formerly Twitter) to share his thoughts on the latest Binance legal development and said that action by the US authorities against Binance exchange is an answer to big questions that how Binance was top in the industry race while remaining away from the legal actions.

In short, Powell claimed that Binance faced such a high level of legal action because the exchange was using unethical ways to provide crypto services to remain top of the competition.

The game feels a bit more fair today. The last 12 months have answered 2 nagging questions from shareholders:

1. How are they going so fast?
2. How are they getting away with it?

"Trust me, any day now…" is only believable for so many years. It's hard to keep faith while…
— Jesse Powell (@jespow) November 23, 2023

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It is worth it to note that Kraken Exchange itself recently sued by the United States Securities and Exchange Commission (SEC) but still hailed the US authority’s action against Binance.

Some people noted that Kraken itself faced legal action under Binance like similar charges, so how is Kraken different from Binance?

By addressing these questions, Powell said that the Binance exchange was top in the race because it was providing crypto services without KYC procedure and it was also easy for people to access the platform for money laundering & illicit financial activities.

According to Powell, such types of unethical ways were favouring Binance to grab a huge user base but indeed it was not a long-term plan for the exchange’s future.

At the same time, he added that Kraken always follows all the rules & laws and always focuses on the long-term business plan.