Kraken co-CEO Sethi withdraws emails questioning Monero buyers about fund sources
Kraken’s co-CEO has publicly reversed a compliance practice that questioned Monero buyers about where their money came from and what they planned to do with the coins. The line he drew, provenance questions yes and intent questions no, is a useful guide to what regulated venues will and will not ask institutions that buy privacy coins.
- Kraken co-CEO Arjun Sethi withdrew emails asking Monero buyers about employers, fund sources and plans for coins.
- Kraken keeps XMR listed, but unanswered source-of-funds requests can freeze deposits and trading under its October 1 policy.
- Payward’s Saldo Bank acquisition, signed October 14, needs regulatory approval and is expected to close in 2027.
- $581 XMR trading price on Kraken early Saturday, after a 5% daily drop
- 87% FreedomXMR inflows ZachXBT linked to illicit activity, a clear majority
- 2027 Expected close of Payward’s Saldo Bank deal, signed October 14
Kraken co-CEO Arjun Sethi said late Friday (October 23) US Eastern time that the exchange was wrong to email buyers of Monero (XMR), a privacy coin designed to obscure transaction details on its blockchain. The emails asked about employers, the source of funds and plans for the coins, and Kraken has withdrawn them.
XMR remains listed and traded near $581 on Kraken early Saturday, down about 5% over 24 hours.
Sethi Says a Staffer Mistook a Young Client’s Wealth for a Red Flag
Sethi laid out the timeline in a post on X. The email went to clients who bought XMR with their own money and then withdrew it. He said a person at the exchange saw a young client with a lot of money and called that a red flag.
“no rule required it,” Sethi wrote. He rejected the staffer’s reasoning: “that is not a red flag. that is our customer and client.”
where your money came from is a fair question. what you do with it after it leaves is not.
