Kraken Fixes Ethereum Funding Gateway Issues

The cryptocurrency exchange, Kraken has reportedly solved an issue with its funding gateway for Ethereum, which caused a delay in deposits and withdrawals. The exchange indicated on its status page that all of its systems were operational without giving the details.

On Sunday, the exchange announced that it was examining an issue on the Ethereum funding gateway that could cause a delay in deposits and withdrawals. Kraken reported similar disruptions for several crypto funding gateways, including those of major cryptocurrencies like Bitcoin and Ethereum, in June.

Additionally, Kraken suspended trading on its futures platform in June for maintenance. Founded in 2011 and based in the US, Kraken is currently ranked the third-largest digital asset exchange by daily trading volumes.

Kraken’s Jesse Powell under Probe

About three weeks ago, Kraken’s Co-Founder, Jesse Powell was investigated by Federal law enforcement agencies for allegedly hacking a non-profit entity he founded. Powell’s home in Los Angeles was reportedly searched by the FBI, and his electronic devices were seized.

Specifically, according to a report by Finance Magnates, Powell is being probed for allegedly blocking access to the emails and computer accounts of the Verge Center for the Arts. Besides that, the US Attorney’s Office for the Northern District of California has reportedly been investigating Powell.

According to the New York Times, Powell, who stepped down as Kraken’s CEO last year, was removed from the Board of Directors of Verge. However, he filed a lawsuit against the non-profit organization contesting his dismissal.

IRS Targets Kraken

Meanwhile, earlier this month, Kraken was ordered by the federal court to submit information related to historical transactions and users’ accounts to the Internal Revenue Service (IRS). The tax agency is reportedly examining whether there are any underreported taxes by the exchange.

In February, the IRS filed a petition before a federal court in the Northern District of California seeking to have the data of customers who transacted more than USD $20,000 between 2016 and 2020 on Kraken. Additionally, the tax agency accused the crypto exchange of failing to comply with the sermons issued earlier.