Kraken wins $22 million arbitration against auditor Mazars for ditching the firm during Operation Choke Point 2.0

What happened

Payward, the parent of Kraken, won a $22 million arbitration award after suing its former auditor Mazars for abandoning a nearly finished audit during Operation Choke Point 2.0.

Confirmed

Global impact / market context

The award shows crypto exchanges face legal risk when auditors quit mid‑audit, likely raising audit fees and pushing firms to choose more dependable compliance partners to protect revenue and liquidity, which means the cash available for operations.

Confirmed

Operation Choke Point 2.0 is a regulatory effort targeting financial services that facilitate high‑risk activities, prompting tighter scrutiny of crypto firms and their service providers, including auditors.

Confirmed

What to watch

1. If other crypto firms file similar lawsuits, audit service costs could rise, increasing operating expenses for exchanges that must budget for higher compliance spending. Analyst inference
2. Regulators may issue stricter rules on audit continuity, forcing exchanges to allocate more resources to maintain uninterrupted audit coverage and avoid service disruptions. Analyst inference
3. Investor confidence in Kraken and peers could improve if the case demonstrates the ability to recover costs from service failures, potentially supporting share price stability. Analyst inference

Affected assets

• BLOCK — Block

Evidence

• theblock.co