Woofun AI reports that Kraken’s parent company, Payward, obtained a $22 million arbitration award against former auditor Mazars USA. The arbitrator mandated the payment after ruling that Mazars’ sudden withdrawal from a nearly completed audit caused significant reputational harm and legal costs for Payward. Payward is now petitioning the Delaware Chancery Court to confirm the decision.

The dispute traces back to 2022, amid industry tensions labeled "Operation Choke Point 2.0." Payward co-CEO Arjun Sethi emphasized that audits constitute critical infrastructure for banking and regulatory trust, not favors. He noted that withdrawals without findings create unwarranted doubt. Sethi highlighted that the FDIC sent at least 25 letters to 24 banks urging restrictions on crypto services following the FTX collapse, framing this legal outcome as a countermeasure against such regulatory pressure.