Kraken, the US-based cryptocurrency exchange, is facing a lawsuit wherein a former trading desk manager has accused the Company of not paying the 10 per cent commission of the annual profits of the trading desk during the time that he worked there. The employee, Jonathan Silverman, has also demanded a compensation of $900,000!
The compensation he seeks is for the over $19 million profits he claims he helped generate when he was in charge of the desk, during his three-month long tenure.
It is reported that the compensation he is demanding exceeds what the exchange had agreed to pay him. In the past, Kraken had agreed to pay him approx. $907,631, on quitting. While Silverman alleges that the Company has failed to pay him the promised amount, the Company maintains that not only is the accusation false, but he is also going against the confidentiality agreement.
Silverman joined the Company in April 2017 and was responsible for managing its institutional sales and trading desk in New York. According to him, there had been an oral agreement wherein he was promised a salary of $150,000 salary as well as a 10 per cent commission on the trading desk’s annual profit.
The lawsuit charges the Company of “misrepresenting to the public and government regulators that it was not operating in New York”, whereas in reality, its operations took place “almost exclusively in New York”.