Kraken Defies N.Y. Attorney General’s Cryptocurrency Inquiry

Kraken, one of the longest-running cryptocurrency exchanges, said its New York registration as a money-services business won’t affect its decision to ignore a request from the state’s top lawyer for detailed information about its operations.

Attorney General Eric Schneiderman said Tuesday that he sent letters to Kraken and a dozen other crypto exchanges seeking information on their internal controls and how they protect customers. The“fact-finding inquiry” is part of his Virtual Markets Integrity Initiative, a program intended to “increase transparency and accountability” on platforms used to trade digital currencies and inform regulators, investors and consumers, he said. Kraken Chief Executive Officer Jesse Powell dismissed the request Wednesday in a tweet.