Thomas Daniels
Ben Gray, the former Global General Counsel at Paxos, has been appointed as the new Chief Legal Officer (CLO) of Kraken, a cryptocurrency exchange based in the United States. The hiring is a component of Kraken’s larger plan to strengthen its framework for risk management, compliance, and law in the face of heightened regulatory scrutiny.
Strategic Legal Guidance for Kraken’s Growth
Kraken highlighted Gray’s position in leading its legal and compliance operations in an official statement. Kraken’s co-CEO, Arjun Sethi, emphasized Gray’s appointment as a critical step in bolstering the company’s leadership.
“His deep experience as a general counsel and chief compliance officer makes him an ideal CLO for Kraken, as the industry continues fighting for regulatory clarity and consumer protections.”
— Arjun Sethi, co-CEO, Kraken
As Kraken navigates changing regulatory regimes, Gray’s vast experience in the cryptocurrency space—including his time at Paxos and previous interactions with Binance—makes him a valuable strategic asset.
Kraken’s Legal Approach and Regulatory Obstacles
Gray steps in as CLO at a pivotal point. Kraken was sued by the U.S. Securities and Exchange Commission (SEC) in 2023 on the grounds that it was an unregistered securities platform. The SEC charged Kraken with commingling customer funds, inadequate internal controls, and unlawful securities operations. Kraken has refuted these claims, claiming that any money exchanged was only done to pay for operating costs.
His guidance will be crucial as Kraken addresses regulatory obstacles and looks to fortify its compliance protocols in a legal environment that is changing quickly.
