Payward, the parent company of crypto exchange Kraken, has won a $22 million arbitration award against its former auditor, Mazars. Payward alleged that Mazars abandoned a nearly complete audit during a period the firm refers to as Operation Choke Point 2.0, a term critics use to describe a coordinated regulatory effort to cut crypto companies off from banking and professional services. The dispute centered on Mazars withdrawing from its engagement despite the audit being close to finished. The arbitration ruling in Payward's favor awards the company $22 million, marking a legal victory for Kraken over a service provider that severed ties during a difficult regulatory environment for digital asset businesses. The outcome may draw attention to the broader pressures crypto firms faced from banks, auditors, and other counterparties during that time.
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