The New York Times reported, citing five people with knowledge of the matter, reported that cryptocurrency exchange Kraken is under federal investigation for potential violations of U.S. sanctions by allowing users in Iran and elsewhere to buy and sell digital tokens.

The US Treasury Department's Office of Foreign Assets Control has been investigating Kraken since 2019 and is predicted to impose a fine, consistent with the report.

Kraken said it doesn't comment on specific discussions with regulators.

Privately owned Kraken is that the latest cryptocurrency company to come under regulatory scrutiny as the fast-growing industry gets caught in the crosshairs of the federal government.

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