- The crypto exchange notified its users about its investigation of the funding gateways issues, which caused delays in transactions.
- Kraken effectively responded to the issue, as it fixed the problems and announced an update to be rolled out on June 7th.
- The US-based crypto firm faces the IRS for its “unjustified treasure hunt.”
Crypto exchange, Kraken, experienced downtime with some gateways as users’ transactions got delayed.
On June 6, the San Francisco-based cryptocurrency exchange, Kraken, announced that it had examined a problem with multiple crypto funding gateways, which included crypto assets that caused operational delays like ETH, BTC, and ERC-20.
According to the exchange’s website, Kraken warned that withdrawals and deposits would be delayed. The firm did not explain why this was happening but only stated that it would provide updates if anything occurred.
The crypto exchange initially announced the delay in transactions by 7:44 UTC, alerting users that it was investigating a problem with the funding gateways. The firm later published two more updates between 8:07 UTC and 8:13 UTC, saying it was working on fixing the problem.
By 8:13 UTC, Kraken published an update, saying it had implemented a fix but was monitoring the results. As of 8:33 UTC, the status page reverted to its usual status and notified the public that the issue had been fixed.
Kraken also suggested that its Support Center would be “intermittently unavailable” on June 7 between 11:00 and 13:00 due to the introduction of new features to be released.
History of Kraken
The cryptocurrency exchange was founded in 2011 by Jesse Powell, Thanh Luu, and Michael Gronager. The firm enables customers to purchase and sell digital assets using fiat currencies such as Canadian dollars, Japanese Yen, US dollars, and euros.
Recognized as one of the largest cryptocurrency exchanges, Kraken also allows trades in crypto derivatives and futures. The San Francisco-based crypto exchange sometimes had it challenging as it journeyed to become one of the crypto exchanges with over $333 million in trading volumes, according to CoinMarketCap.
Kraken was hit with a DDoS attack in May 2017, along with Poloniex, a BTC exchange. Traders and investors suffered a massive loss due to this attack, resulting in a class action lawsuit against the crypto exchange. The plaintiffs demanded $5 million as their restitution fee, which they allegedly lost in the DDoS (Distributed Denial of Service) attack on Kraken.
In April, Bloomberg reported that Kraken was battling with the US IRS (Internal Revenue Service) as the agency demanded crypto customer information. The crypto firm had requested the help of a federal court in San Francisco as it called the IRS’ request an “unjustified treasure hunt.”
The crypto exchange mentioned Coinbase’s 2017 case and stated that the tax agency was acting beyond its jurisdictions set by the United States.
Conclusion
No assets have been reported lost or missing since Kraken’s delay in withdrawals and deposits. The crypto exchange quickly addressed the crypto funding gateways problems and alerted its users that all its systems were operational.
