Payward Inc., the parent company of U.S. cryptocurrency exchange Kraken, has asked the Delaware Court of Chancery to enter final judgment against Mazars USA after securing a $22 million arbitration award. Co-CEO Arjun Sethi framed the dispute within broader concerns about debanking, regulatory pressures on crypto firms, and the need for clearer market rules in the United States.
Arbitration Award and Court Filing
According to the filing, Payward is seeking to convert the arbitration award into an enforceable court judgment against Mazars USA. Confirming an arbitration award through the court is a standard step to facilitate enforcement if payment is contested or delayed. Details of the underlying dispute were not disclosed in the filing summary provided.
Sethi Calls for Clear U.S. Crypto Rules
Sethi characterized the case as emblematic of broader challenges facing the digital asset industry, including accounts being closed or restricted by financial institutions and uneven regulatory oversight. He reiterated the company’s call for clear, consistent rules for crypto markets in the United States to provide operational certainty for compliant firms and better protections for consumers.
Broader Industry Context
The action comes amid sustained scrutiny of crypto businesses by U.S. regulators and banks’ heightened risk controls affecting digital asset firms. Kraken, one of the longest-operating U.S. exchanges, has previously advocated for comprehensive federal standards covering custody, market structure, and disclosures to reduce ambiguity and improve market integrity.
What’s Next
If the Delaware Court of Chancery grants Payward’s request, the arbitration award would be entered as a court judgment, strengthening its enforceability. Neither Payward nor Mazars USA immediately provided additional public details on the next steps or timelines.