Kraken parent Payward wins $22M arbitration vs Mazars, seeks Delaware judgment

Kraken’s parent Payward has won a $22 million arbitration award against auditor Mazars USA after Mazars withdrew from Kraken’s nearly finished 2022 financial audit. Payward is now asking the Delaware Court of Chancery to enter final judgment, converting the confidential arbitration result into an enforceable court award. Mazars’ exit came in December 2023, days before the 2022 audit was expected to complete. Mazars had already issued two clean opinions and had audited Kraken’s financial statements for three years, but it later cited no fraud or management-integrity concerns. Payward argues the sudden withdrawal caused regulatory and commercial harm—especially amid the US “pressure cycle” that has made state licensing and banking relationships harder for crypto firms. The article adds that redacted arbitration materials show $12.5 million of the award was tied to Kraken’s TradeStation Crypto acquisition, which Payward says helped address regulatory and licensing complications after the audit disruption. The legal win arrives as Payward pushes a more regulated-market profile, including job cuts (150 jobs) under IPO pressure. For traders, the key signal is improved legal clarity around an audit/licensing dispute. If Kraken and Payward can reduce compliance uncertainty, it may support sentiment toward larger, more regulated exchange operators—though follow-up court/legal steps remain a watch item. Keywords: Kraken audit, Payward arbitration award, Mazars, Delaware Court of Chancery judgment, crypto licensing, job cuts, TradeStation Crypto, compliance risk, SEC risk.