Crypto Exchange Kraken Denies Office Closure Rumor

News | September 6, 2018 By:

Cryptocurrency exchange Kraken has denied rumors that it is shutting down its service center in Canada.

On Thursday, a Reddit user posted a thread claiming that Kraken is closing its branch in Halifax, Canada in response to a security breach.

“Kraken Currency exchange in Halifax unit 102 at 60 Highfield park drive has just laid off hundreds of people In response to a security breech and theres currently a giant commotion happening up there and private security all over the place escorting people off the premises after making them sign voluntary quit forms,” Reddit user “throwaway34034324” said

Another reddit user, who claimed to be one of the employees of Kraken’s Halifax branch, said the exchange held a mandatory staff meeting at 10 am, and offered employees 8 weeks pay as a severance package if they resign.

“Security everywhere, required to hand in door fobs,” Reddit user “MysteriousPlankton.” “Sitting in lunchroom, get told that due to volumes being down (both trading and support ticket), and in light of the opening of a new office in Asia, we need to reduce costs, and layoff of recently hired (<3 months, approx 57 people) was not enough. We’re told that if we resign by Friday at noon, we’re given 8 weeks pay as a severance package. If we do not accept in time, they tell us that they cannot guarantee our continued employment.”

In a Twitter post, however, the Kraken support team denied the rumor, saying that: “We can confirm that we are not shutting down any operations in any specific place, and there has been no security breach. Everything is fine & secure.”

In February of this year, Karken told Business Insider it was looking to hire 800 people in 2018. However, in April, the exchange ceased all of its trading operations in Japan due to increased operational costs, and the country’s increasing regulation of the crypto market.