Kraken’s former trading desk manager has approached the court to get his dues settled. He claimed in a suit that one of the oldest bitcoin exchange owed him for the work done. He contends that though the company has made a profit, it failed to pay him. Therefore, he prayed before the court for relief.
According to Bloomberg in April 2017, Kraken hired Jonathan Silverman to manage its institutional sales, as well as, trading desk in New York. He pointed out that he struck a deal with the exchange’s founder, Jesse Powell, for salary and commission. Accordingly, he should get a salary of $150,000 and 10 percent commission of annual profit from the trading desk.
There was only oral agreement as far as the deal relating to the commission. The former employee alleged that the trading desk earned over $19 million as profit in the three month period in 2017. However, Silverman claimed that the exchange has failed to pay him either the promised commission or the additional stock options.
On the other hand, the exchange’s spokesperson, Christina Vee, accused him of lying. Also, the exchange official said that the former employee has only committed a breach of his confidentiality agreement. Powell has also earned a name for his outspokenness in the crypto world.
For instance, he told the New York Attorney General last year that there is no need for the exchange to follow the rules of New York since there is no operation for years. His comments came on the back of request for information about his exchange.
In a tweet in April 2018, the founder of Kraken exchange has taken pride for its decision to get out of the New York three years ago. In a blog post in 2015, the cryptocurrency exchange disclosed that it had discontinued its services in New York due to tedious requirements of Department of Financial Services.
However, the former trading desk employee has challenged these assertions. He said that the exchange is misrepresenting the regulators and the public about its New York operations. In the suit, he said that the exchange adopted OTC route to manage its services in the State. He is one of the two hired at New York office by the exchange. It is no secret that crypto exchanges buy and sell on their own in internal trading desks relative to the conventional financial system.
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