Kraken Appoints Ex-Paxos Exec as New Chief Legal Officer Amid Regulatory Scrutiny
Kraken appoints ex-Paxos exec as new chief legal officer to enhance its legal framework and compliance measures. The U.S.-based cryptocurrency exchange has officially welcomed Ben Gray, the former Global General Counsel at Paxos, to lead its legal team. His role will include overseeing legal, compliance, and enterprise risk management operations.
Kraken’s leadership views this appointment as a strategic move to reinforce its regulatory standing. Co-CEO Arjun Sethi stated that Gray would be a “critical addition” as the company navigates the evolving crypto landscape and aims for expansion.
Ben Gray brings a wealth of experience to Kraken. As Global General Counsel at Paxos, he was instrumental in overseeing regulatory frameworks for stablecoins issued by PayPal. Additionally, his prior association with Binance further solidifies his expertise in managing crypto-related legal complexities.
His appointment comes at a crucial time when Kraken faces increased regulatory scrutiny. In 2023, the U.S. Securities and Exchange Commission (SEC) sued Kraken, accusing it of operating an unregistered securities exchange. The SEC alleged that Kraken had commingled customer funds with its own and generated substantial revenue without proper investor protections. In response, Kraken denied these allegations, stating that any “commingling” was solely to cover operational expenses.
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Gray’s legal acumen is expected to play a pivotal role in addressing these regulatory challenges. His deep understanding of the crypto industry and compliance frameworks will be crucial as Kraken continues to expand its services while navigating the complex legal environment surrounding digital assets.
As Kraken appoints ex-Paxos exec as new chief legal officer, the exchange is signaling its commitment to legal robustness and regulatory adherence. Industry experts believe that Gray’s expertise will help Kraken establish a stronger compliance framework, ensuring long-term sustainability in an evolving regulatory landscape.
Kraken’s latest move reflects the growing trend of crypto firms hiring top legal professionals to manage increasing regulatory pressures. With Ben Gray now part of the executive team, Kraken is poised to fortify its legal and compliance strategies, reinforcing trust among investors and stakeholders.
