Category Archives: Jesse Powell

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Kraken Ex-Manager Suing Exchange Over $900,000 Alleged Unpaid Commission

Kraken Ex-Manager Suing Exchange Over 0,000 Alleged Unpaid Commission

An ex-employee is suing cryptocurrency exchange Kraken, the world’s largest bitcoin exchange in euro volume and liquidity

Jonathan Silverman, who was previously employed by the company’s trading desk in New York claims he is still owed a commission on USD 19 million profits accrued over three months in 2017. The commission still owed, amounting to 10%, is over USD 900,000, claims Silverman.

At the time, the company’s founder Jesse Powell is said to have offered the trading desk manager a salary of USD 150,000 with a verbal agreement of 10% commission of the trading desk’s annual profit, according to the suit filed in New York on 4 April.

Christiana Vee, a spokesman for Kraken, was clearly highly skeptical of the claim, suggesting that Silverman “is both lying and in breach of his confidentiality agreement”. Founder Powell himself is not unused to friction, once attacking the New York Attorney General after being asked for more information about the exchange, suggesting that that “most crypto traders” aren’t concerned about “being protected from market manipulation” even though “scams are rampant”.

Clearly unhappy with New York’s regulators, Powell tweeted last year, We made the wise decision to get the hell out of New York three years ago”. The company made a farewell statement which was attacked New York’s BitLicense, introduced by the Department of Financial Services.

“Regrettably, the abominable BitLicense has awakened. It is a creature so foul, so cruel that not even Kraken possesses the courage or strength to face its nasty, big, pointy teeth.”

David Silver, representing Silverman and his claim for restoration over the alleged missing commission, prewarned Kraken in comments made in an emailed statement, arguing: “Just because some people in the cryptocurrency space don’t believe the rules apply to them doesn’t mean that’s the way things actually work.”

The lawsuit argues that Kraken “refused” to pay out the lump sum settlement of USD 907,631, despite the agreement.


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Mt Gox Trustee Allegedly Sold $318 Million Worth of Creditor BTC, BCH

Mt Gox Trustee Allegedly Sold 8 Million Worth of Creditor BTC, BCH

A sell transaction of over USD 318 million has been uncovered, according to leaked screenshots of transactions and order book data shared on of transactions between BitPoint cryptocurrency exchange and Nobuaki Kobayashi, the trustee of now-defunct cryptocurrency exchange Mt Gox.

GoxDox is a site that has supported the cause of the victims of the defunct exchange. The site suggested that the funds may indeed have had something to do with an alleged liquidation of 60,000 Bitcoins and Bitcoin Cash, as the funds were transferred from BitPoint exchange to the trustee’s account, noting: “Unless BitPoint is being really generous, we’d wager the reason they are depositing billions JPY into the trustee’s bank account is because they were hired to sell the Mt Gox Estate’s BTC/BCH.”

It appears that the trustee may have approached Kraken’s CEO Jesse Powell on the matter of liquidation, who however, advised against the move, suggesting that the trustee should do it in an auction or over the counter (OTC) desk considering the volume of BTC to be sold in order for it to have minimal effect on the market.

“Instead of taking Kraken’s advice, the trustee decided to (1) sell, (2) not tell us how he sold, and (3) hire a different so-called ‘cryptocurrency expert’ to sell the BTC/BCH,” the source said.

Kobayashi had been accused of similar actions in 2017 and 2018 and was allegedly the cause of the price decline at the time when he sold off USD 400 million worth of Bitcoins and Bitcoin Cash. However, he denied he was responsible for the price crash saying that:

“Following consultation with cryptocurrency experts, I sold BTC and BCC [BCH], not by an ordinary sale through the BTC/BCC [BCH] exchange, but in a manner that would avoid affecting the market price, while ensuring the security of the transaction to the [greatest] extent possible.” Still, he hasn’t disclosed how he managed the liquidation of the asset.

He further said: “The method of sale of BTC and BCH was approved by the court as well – I would like to refrain from explaining the details of the method of sale.” In his opinion, saying more would affect the future sale.

According to the source, Redditors had pointed out that “the trustee’s withdrawal of BTC from the MtGox estate’s wallets correlate to Jan/Feb drops in BTC;s price”, with supporting documents.

Moreover, after Kobayashi sold USD 400 million of Bitcoin and Bitcoin Cash from December 2017 through February 2018, Bitcoin News reported that no more bitcoins will be sold off, which at the time was good news to the creditors as the civil rehabilitation enable them to share BTC 137,891 reserved. However, it remains to be known what led to the recent sell-off if true, and why protocol had been broken with respect to the counsel provided by Powell.

For the creditors, the filing of claims was extended last month for those who didn’t meet the initial deadline. Meanwhile, Mt Gox CEO Mark Karpeles awaits the court’s final verdict with regards to embezzlement and exchange data manipulation charges which netted him USD 3.1 million belonging to customers during the latter months of 2013. The long trial is expected to end on 15 March 2019.


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