Consumer complaint received 2026-03-01 00:00:00
Product: Money transfer, virtual currency, or money service — Virtual currency
Issue: Other transaction problem — 
Company: Payward Ventures Inc. dba Kraken
State: WA

Complaint narrative:
This is a follow-up to CFPB Complaint No. XXXX, filed in XX/XX/year>. I am filing this second complaint because Kraken 's response to the original complaint demonstrated willful noncompliance with the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq., and Regulation E, 12 C.F.R. Part 1005. The violations identified below are ongoing. BACKGROUND : On XX/XX/year>, I was XXXX and physically robbed in XXXX, XXXX. While incapacitated, the perpetrators accessed my Kraken account and executed the following unauthorized electronic fund transfers : XXXX XXXX withdrawn ( {$31000.00} at time of transfer ) XXXX XXXX withdrawn ( {$37000.00} ) XXXX XXXX withdrawn ( {$1900.00} ) XXXX XXXX withdrawn ( {$160.00} ) {$5000.00} fraudulent XXXX/ACH deposit initiated, converted to XXXX ETH, and withdrawn ( {$4800.00} ) Total stolen from existing holdings : {$71000.00} Total including fraudulent deposit scheme : {$76000.00} My bank correctly flagged and reversed the fraudulent {$5000.00} XXXX deposit. Kraken then debited my account, creating a negative balance of - {$4800.00}, and is demanding I pay this amount effectively billing me for a transaction initiated by my robbers. Law enforcement case numbers : XXXX XXXX Police XXXX ; FBI IC3 reference XXXX XXXX XXXX XXXX Fraud reference XXXX XXXX TIMELY NOTIFICATION : I notified Kraken of these unauthorized transfers on XX/XX/year> ( email to XXXX, Ticket # XXXX ), providing my police case number and stating the account was compromised during a robbery. I sent additional written notice on XX/XX/year>. These communications constitute timely oral and written notice of error under 12 C.F.R. 1005.11 ( b ). VIOLATION 1 FAILURE TO INVESTIGATE ( 12 C.F.R. 1005.11 ( c ) ) : Under Regulation E, upon receiving notice of an error involving unauthorized electronic fund transfers, a financial institution must investigate and determine whether an error occurred within 10 business days. Kraken never conducted any investigation. In their response to CFPB Complaint XXXX and in all email communications, Kraken stated only that ( a ) clients are " responsible for all activity on their accounts '' per their Terms of Service, and ( b ) cryptocurrency transactions are " irreversible. '' Neither response constitutes an investigation. Kraken never requested transaction details, never reviewed IP addresses or device logs for the unauthorized session, never analyzed the pattern of transfers, and never communicated the results of any investigation as required by 1005.11 ( d ). Ten months have now passed. No investigation has occurred. VIOLATION 2 FAILURE TO PROVISIONALLY CREDIT ( 12 C.F.R. 1005.11 ( c ) ( 2 ) ) : Kraken never provisionally credited my account for the unauthorized transfers. Under Regulation E, if a financial institution can not complete its investigation within 10 business days, it must provisionally credit the consumer 's account. No provisional credit was ever issued. VIOLATION 3 IMPROPER COLLECTION OF DEBT ARISING FROM UNAUTHORIZED TRANSFER : The {$5000.00} XXXX/ACH deposit was initiated by the criminals who robbed me, not by me. My bank identified it as fraud and reversed the charge. Kraken is now demanding I pay {$4800.00} for this unauthorized transaction. Under the EFTA, a consumer 's liability for unauthorized electronic fund transfers is limited under 15 U.S.C. 1693g. Attempting to collect the full amount of an unauthorized transfer from the victim and threatening collection action violates this liability limitation. This collection demand is ongoing as of the date of this complaint. VIOLATION 4 RELIANCE ON VOID CONTRACT TERMS : In response to my original CFPB complaint and in multiple emails, Kraken cited " Section 1 of our Terms of Service '' to disclaim responsibility. Under 15 U.S.C. 1693l, no writing or other agreement between a consumer and any other person may contain any provision which constitutes a waiver of any right conferred under the EFTA. Kraken 's TOS provisions asserting that clients are " fully responsible for all activity on their accounts, including transactions made using valid credentials '' are void to the extent they purport to waive EFTA protections for unauthorized transfers. WHAT KRAKEN 'S ORIGINAL CFPB RESPONSE REVEALS : In response to Complaint XXXX, XXXX never XXXX the EFTA, XXXX XXXX, or any obligation to investigate unauthorized transfers. Their response relied entirely on their Terms of Service and the irreversibility of blockchain transactions. This demonstrates either ignorance of or deliberate disregard for their federal obligations as a financial institution under the EFTA.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation