Kraken co-CEO admits quizzing Monero buyers about their coins was a mistake

Kraken co-CEO Arjun Sethi said the exchange erred in emailing Monero buyers to ask about their employer, the source of their funds and their plans for the coins, stating in an October 23, 2026 post on X that no rule required the questions. The emails targeted clients who bought XMR with their own money and withdrew it after an employee viewed a young client’s wealth as a red flag; Sethi said the requests were withdrawn and clients were told nothing was required. Kraken said source-of-funds checks can continue under anti-money-laundering laws, and a policy updated October 1 says unanswered inquiries may freeze deposits and trading but not withdrawals. Monero, a privacy coin meant to obscure blockchain transaction details, remains listed.