Payward Wins $22 Million Arbitration Award Against Mazars Over Abandoned Kraken Audit

Payward, the parent company of Kraken, has secured a $22 million arbitration award against Mazars USA after the auditor abandoned a nearly completed audit of the cryptocurrency exchange. According to Payward co-CEO Arjun Sethi, Mazars withdrew without identifying any professional disputes, management integrity concerns, or fraud at Kraken.

Mazars cited uncertainty and legal risks from regulatory developments, including SEC enforcement actions against crypto firms, when it terminated the audit relationship during the period of heightened regulatory scrutiny on digital asset businesses. Payward is now seeking final judgment from Delaware Court of Chancery on the award.