Crypto Exchange Kraken Appoints New Chief Compliance Officer After Months of Search

Cryptocurrency exchange Kraken says it has named CJ Rinaldi as its new chief compliance officer, hiring him from rival, as it continues to revamp its compliance program after a sanctions violation settlement amid increasing regulatory scrutiny of the crypto industry.

Mr. Rinaldi recently served as Compliance Officer for about a year, where he implemented global compliance frameworks and mitigated compliance risks. Prior to joining London-based in October 2021, he was Head of Market Compliance in the Americas for broker-dealer Deutsche Bank Securities Inc.

Mr. Rinaldi also served as a senior counsel in the enforcement division of the United States Securities and Exchange Commission between 1991 and 1997, and has held senior positions at financial institutions, including UBS Investment Bank and the fund speculative Bridgewater Associates, helping some of the organizations implement the requirements. of the 2010 Dodd-Frank Act and in collaboration with regulators.

Kraken, which was founded in 2011, began its search for a new chief compliance officer after Steven Christie left the company after four years for rival exchange Binance last May.

The conclusion of the search for a chief compliance officer comes as Kraken has agreed to invest in its compliance programs as part of a settlement agreement with the US Treasury Department.

In November, Kraken agreed to pay more than $362,000 to settle allegations that he violated US sanctions on Iran. The company allegedly violated US sanctions laws by failing to block users in Iran from accessing its platform, allowing them to complete transactions worth more than $1.68 million. dollars between October 2015 and June 2019, the Treasury Department’s Office of Foreign Assets Control said at the time.

OFAC said Kraken failed to implement appropriate tools in a timely manner to identify user locations, including an automated internet protocol address blocking system, according to the settlement. As part of the deal, Kraken will invest $100,000 in its sanctions compliance checks, which include training and technical measures.

Kraken is in the midst of a management shake-up. The company said in September that chief operating officer Dave Ripley would succeed chief executive Jesse Powell. They remain in their current positions as Kraken continues to search for a new COO to succeed Mr. Ripley. Kraken also hired a new chief financial officer and chief marketing officer last year.

Write to Mengqi Sun at [email protected]

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