Kraken Appoints New CLO Amidst Regulatory Storm

U.S.-based cryptocurrency exchange Kraken has appointed Ben Gray as its new chief legal officer (CLO), bolstering its legal team. The exchange announced the hire in a blog post, stating that Gray will oversee the company's legal, compliance, and enterprise risk management functions.

Kraken co-CEO Arjun Sethi praised Gray's appointment, describing him as a "critical addition" to the exchange's leadership team as the company continues to grow. Sethi highlighted Gray's extensive experience as a general counsel and chief compliance officer, noting that these skills make him an ideal CLO for Kraken as the industry grapples with regulatory uncertainty and consumer protection challenges.

Prior to joining Kraken, Gray served as Global General Counsel at Paxos, a blockchain firm known for issuing stablecoins for PayPal. He also has experience working with Binance. Gray's appointment comes at a pivotal moment for Kraken, which has faced increased regulatory scrutiny.

In 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, accusing the exchange of operating as a securities exchange without registering with the regulator. The SEC alleged that Kraken made hundreds of millions of dollars while disregarding investor protection laws and exhibiting poor internal controls, including commingling clients' funds with its own. Kraken has maintained that any "commingling" was solely to cover earned operating expenses.