Former Kraken manager intends to collect $ 900,000 from the exchange in court
A former employee of the Kraken cryptocurrency exchange has filed a lawsuit against the company, claiming that it did not pay the compensation due to him in the amount of $ 900,000, Bloomberg writes, citing a lawsuit filed on April 4..
Jonathan Silverman was hired by Kraken in April 2017 as an Institutional Sales and Trading Platform Manager in New York. Under the terms of the agreement, Silverman was entitled to a salary of $ 150,000. In addition, the plaintiff had a verbal agreement with Kraken CEO Jesse Powell, who allegedly promised him 10% of the trading platform’s annual profit. Silverman claims that the division brought in more than $ 19 million for the company in three months in 2017, but he saw neither the additional payments nor the promised opportunity to acquire a stake in the company..
Kraken spokeswoman Christina Vee said the ex-manager “is lying and violating the terms of a non-disclosure agreement.”.
In 2015, Kraken announced its departure from New York under pressure from local regulators, which it deemed unreasonably harsh. Subsequently, Powell has repeatedly criticized the New York authorities for obstructing the business of cryptocurrency companies..
Silverman disputes the exchange’s official position in his lawsuit. According to him, “Kraken misrepresented in front of the public and government regulators that it did not function in New York.” In reality, OTC practices and trading on Kraken (done by logging into an account on Kraken and negotiating transactions using bank transfers) took place almost entirely in New York, the plaintiff says..
Kraken’s New York division brought in $ 19 million from September 15 to late 2017, according to a lawsuit filed by another former employee, Robert Adler. After leaving the company, Silverman negotiated a one-time payment of $ 907,631 with Kraken, but the exchange “refused” to honor its obligations, he claims..