4.4/5
Kraken Service Evaluation
Key Takeaway: Kraken (Expert Score: 4.4/5.0)
Kraken earns a BestGuide Expert Score of 4.4/5.0. Operated by Payward, Inc. (headquartered in San Francisco, CA), Kraken is one of the longest-operating US-regulated crypto exchanges, founded in 2011 by Jesse Powell (now Chairman of the Board). Current leadership is Co-CEO Arjun Sethi. Payward reported $2.2 billion in adjusted 2025 revenue (+33% YoY), 5.7 million funded accounts (+50% YoY), and $48.2 billion in platform assets. Kraken Pro maker/taker fees start at 0.16%/0.26% (under $50K 30-day volume), one of the most competitive structures among US-licensed exchanges. The score reflects strong product features and legitimate US-licensed status balanced against material regulatory and customer service considerations: a 2023 SEC $30M settlement over the unregistered Kraken Staking Program, 492 CFPB complaints (217 involving fraud/scam allegations per public CFPB database analysis), and a June 2024 zero-day exploit that drained $3 million from Kraken treasury (recovered, no user funds affected).
Kraken earns an Expert Score of 4.4/5.0 from BestGuide, positioning it as a leading US-licensed crypto exchange particularly for security-conscious and cost-sensitive active traders. This Kraken review covers product features, regulatory history, customer feedback signals, and the trade-offs between the simple Instant Buy interface and the lower-fee Kraken Pro platform.
Founded in 2011 by Jesse Powell, Kraken is operated by Payward, Inc. (San Francisco, CA) and is one of the oldest continuously operating crypto exchanges in the United States. Jesse Powell stepped down from the CEO role in 2022 and now serves as Chairman of the Board; the company is currently led by Co-CEO Arjun Sethi, who announced the company’s 2025 financial results in February 2026. Payward filed a confidential IPO registration in November 2025; as of May 2026, the IPO is positioned as pending rather than completed.
The platform offers two distinct experiences for different user types: a simple Instant Buy widget for new investors who want straightforward crypto purchases (1.5% fee), and Kraken Pro for active traders with maker/taker fees as low as 0.16%/0.26%. Kraken supports over 200 cryptocurrencies for US users, holds approximately 95% of digital assets in offline cold storage per its security disclosures, and conducts independent proof-of-reserves audits. Compare Kraken with other US-licensed crypto exchanges before opening an account.
How the Kraken Exchange Works
Account Creation and Verification
Getting started with Kraken requires creating an account with an email and strong password. To comply with US financial regulations, users complete Know Your Customer (KYC) verification. The Starter tier requires basic personal information and can be completed in under 2 minutes, allowing limited crypto deposits. For USD fiat deposits and higher withdrawal limits, users upgrade to Intermediate verification by providing government-issued ID and proof of address (typically under 10 minutes for automated approval).
Funding Your Account and Buying Crypto
Once verified to Intermediate level, US customers can fund accounts via free ACH transfers (typically 1 to 3 business days) or wire transfers for larger amounts. After funding, users can purchase 200+ cryptocurrencies through the Instant Buy widget. The Instant Buy interface charges a 1.5% fee for most purchases, providing a straightforward entry point but at materially higher cost than Kraken Pro.
Trading on Kraken and Kraken Pro
For experienced traders, Kraken offers Kraken Pro at no extra cost. The platform provides advanced charting, detailed order books, and a tiered maker-taker fee structure starting at 0.16% (maker) and 0.26% (taker) for 30-day volume under $50,000. Fees scale down further as volume increases (institutional tiers can reach 0.00%/0.10%). The Kraken app on iOS and Android integrates both Instant Buy and Pro features, allowing users to manage their portfolio from a single mobile interface.
Who Kraken Is Best For
Kraken is best for two primary user types. First, security-focused long-term investors who prioritize asset protection and a long track record of operations (Kraken has operated continuously since 2011) over the lowest possible fees on infrequent trades. Second, active high-volume traders with portfolios over $10,000 who can benefit from Kraken Pro’s competitive maker/taker tiers (0.16%/0.26% starting, lower at higher volumes). Kraken is not ideal for users who want only the simplest possible interface at the lowest cost, or users with no interest in advanced trading tools, since the Instant Buy 1.5% fee is materially higher than Kraken Pro and competing US-licensed alternatives.
Kraken Standout Features
Long Operating History Without a User-Funds Hack: Kraken has operated continuously since 2011 without a hack affecting user funds. The platform holds approximately 95% of digital assets in offline, geographically distributed cold storage and conducts independent proof-of-reserves audits. In June 2024, Kraken did experience a zero-day exploit that drained approximately $3 million from the company’s treasury (discussed in the security section below); per Kraken, no user funds were affected and the funds were subsequently recovered.
Kraken Pro at No Extra Cost: Kraken Pro is available to all users for free and offers maker/taker fees starting at 0.16%/0.26% (under $50K 30-day volume), among the most competitive in the US-licensed exchange market. This is materially lower than Coinbase Advanced (0.40%/0.60% at entry level) for comparable volume.
Asset Selection: Kraken supports over 200 cryptocurrencies for US users, exceeding the lineup of many US-licensed competitors. The Instant Buy interface, Kraken Pro, and the Kraken app all use the same asset universe.
Staking Services (US Available Again): Following the February 2023 SEC settlement that required Kraken to discontinue its Kraken Staking Program for US users, Kraken launched a redesigned staking service in late 2024 with different structure (transparent on-chain rewards, separated fund delivery, no commingling). US users can now stake select assets through this new product. Specific APYs and supported assets are variable and should be confirmed directly on Kraken’s website.
Scale and Financial Transparency: Payward reported $2.2 billion in adjusted 2025 revenue (+33% YoY), $2 trillion in transaction volume (+34% YoY), $48.2 billion in platform assets (+11% YoY), and 5.7 million funded accounts (+50% YoY). These metrics, disclosed in February 2026 ahead of the confidentially-filed IPO, position Kraken among the more financially substantial US-active crypto exchanges.
Regulatory History and Settlements
Kraken has been subject to two notable US regulatory actions in recent years. Both are material to understand before opening an account, particularly for users considering staking products or relying on a clean regulatory record.
February 2023: $30 Million SEC Staking Settlement
On February 9, 2023, the U.S. Securities and Exchange Commission announced charges against Payward Ventures, Inc. and Payward Trading Ltd. (collectively Kraken) for failing to register the offer and sale of the Kraken Staking-as-a-Service program. To settle the charges, Kraken agreed to:
- Pay $30 million in disgorgement, prejudgment interest, and civil penalties
- Immediately discontinue the Kraken Staking Program for US users
- Consent to a permanent injunction against violating Section 5 of the Securities Act of 1933
- Permanently enjoin Kraken and any entity it controls from offering or selling securities through crypto asset staking services or staking programs in the US
The SEC alleged Kraken’s pre-2023 staking program had advertised annual returns of up to 21% and that since 2019, Kraken had commingled crypto assets from different investors and staked them on their behalf without registering the program as a securities offering. Kraken did not admit or deny the allegations. The settlement effectively shut down US staking through Kraken until the platform launched a redesigned, restructured staking service in late 2024 that addresses the SEC’s concerns.
November 2023 SEC Lawsuit: Dismissed With Prejudice March 2025
Separately, on November 20, 2023, the SEC filed a broader lawsuit against Payward, Inc. and Payward Ventures, Inc. alleging Kraken operated as an unregistered securities exchange, broker, dealer, and clearing agency. The SEC claimed Kraken had made “hundreds of millions of dollars” facilitating crypto-asset securities trading since September 2018 without proper registration.
Kraken’s motion to dismiss was denied in August 2024. However, following the change in SEC leadership in 2025, the SEC moved to dismiss this case with prejudice in March 2025. The “with prejudice” dismissal means the SEC cannot refile these specific charges against Kraken. Per Reuters and Kraken’s own statement, the dismissal involved no admission of wrongdoing, no penalties, and no changes to Kraken’s business. The dismissal was part of the broader 2025 SEC pivot on crypto enforcement that also resulted in the dismissal of similar lawsuits against Coinbase and other major exchanges.
Security and the June 2024 Zero-Day Exploit
Kraken’s security record requires accurate context. The platform has operated for over 14 years without a hack that affected user funds, and holds approximately 95% of digital assets in offline cold storage. The exchange runs a bug bounty program and conducts independent proof-of-reserves audits.
However, on June 9, 2024, Kraken received a bug bounty report describing a critical vulnerability that allowed an attacker to initiate a deposit, receive credit before the transaction was fully confirmed on the blockchain, and withdraw real money against that phantom balance. Kraken’s Chief Security Officer Nick Percoco confirmed that the bug was identified within minutes and patched within an hour. However, the security researcher who reported the bug had also shared the vulnerability with two other individuals, and the three exploited it to withdraw approximately $3 million from Kraken’s treasury over several days before Kraken’s patch took effect.
Important context for prospective users: no customer funds were affected. The $3 million was drained from Kraken’s own treasury reserves. Kraken referred the incident to law enforcement, treated it as a criminal matter (rather than a legitimate bug bounty), and subsequently recovered nearly all of the stolen funds. The blockchain security firm CertiK later issued an August 2024 statement acknowledging it had “made errors in judgment and poorly communicated with Kraken” during the incident. This is the only security incident affecting Kraken’s reserves in the platform’s 14+ year operating history.
Customer Feedback: CFPB Complaints
While Kraken does not have a widely-cited Better Business Bureau profile, the Consumer Financial Protection Bureau (CFPB) maintains a public complaint database that includes 492 complaints filed against Kraken as of 2025-2026, per public CFPB data analysis. Of these, approximately 217 complaints (44%) involve fraud or scam allegations, while the remainder relate to account access issues, transaction problems, transfer delays, and customer service responsiveness concerns.
Prospective US customers should understand that the CFPB complaint database does not distinguish between situations where the platform itself was at fault and situations where users were victims of external scams that involved sending funds through Kraken. Many of the fraud-allegation complaints involve external scam operators who instructed victims to use Kraken to transfer funds, rather than Kraken itself perpetrating fraud. That said, the absolute volume of complaints is meaningful and reflects the broader challenge crypto exchanges face in detecting and preventing third-party scam activity that runs through their platforms. Active customer support and ongoing education on common crypto scam patterns are essential for users.
Kraken Pros and Cons
| Pros | Cons |
|---|---|
| 14+ Year Operating History: Founded 2011; one of the longest continuously operating US crypto exchanges with no hack affecting user funds. | February 2023 SEC Staking Settlement: Paid $30 million to settle charges over the unregistered Kraken Staking Program; permanent injunction in place. New staking service launched late 2024 with restructured design. |
| Kraken Pro Low Fees: Maker/taker fees start at 0.16%/0.26% (under $50K 30-day volume), competitive against Coinbase Advanced (0.40%/0.60%) and Kraken Pro is free to all users. | Higher Instant Buy Fee: The simple Instant Buy widget charges 1.5% plus spread, materially higher than Kraken Pro. New users may not realize the cost difference. |
| Approximately 95% Cold Storage: The platform states approximately 95% of digital assets are held in offline, geographically distributed cold storage with proof-of-reserves audits. | CFPB Complaints (492 Filed): Public CFPB complaint database includes 492 complaints with Kraken; 217 (44%) involve fraud or scam allegations, though many relate to external scammers using Kraken as transfer rail rather than Kraken’s own conduct. |
| Asset Selection (200+ Cryptocurrencies): One of the larger crypto lineups among US-licensed exchanges. | June 2024 Zero-Day Exploit ($3M from Treasury): Bug bounty researcher and two associates exploited a vulnerability to drain $3M from Kraken’s treasury reserves. No user funds affected; funds subsequently recovered. Unique incident in 14 years of operations. |
| $2.2 Billion 2025 Revenue + 5.7M Funded Accounts: Material financial scale; confidentially filed IPO in November 2025 positioning Payward for potential public listing. | Crypto Futures Not Available for US Retail: Kraken offers futures trading globally but US retail futures access is limited due to CFTC rules. |
| FinCEN MSB Registration: Payward, Inc. registered as a Money Services Business with FinCEN (registration #31000229215335) and holds state money transmitter licenses. | SEC November 2023 Lawsuit (Dismissed March 2025): Although ultimately dismissed with prejudice (no admission of wrongdoing, no penalties), the SEC enforcement action represents recent regulatory friction in Kraken’s history. |
Is Kraken Safe and Legit?
Yes, Kraken is a legitimate, US-licensed cryptocurrency exchange. Founded in 2011 by Jesse Powell (now Chairman of the Board), Kraken is operated by Payward, Inc., headquartered in San Francisco, California. Current leadership is Co-CEO Arjun Sethi, who announced the company’s 2025 financial results in February 2026. Payward filed a confidential IPO registration with the SEC in November 2025; as of May 2026, the IPO is pending rather than completed.
Regulatory and operational legitimacy markers include:
- FinCEN MSB Registration: Payward, Inc. is registered as a Money Services Business with the Financial Crimes Enforcement Network (registration #31000229215335)
- State Money Transmitter Licenses: Holds licenses in applicable US jurisdictions
- 14+ years of continuous US operations (founded 2011) with no hack affecting user funds
- $48.2 billion in platform assets and $2 trillion in 2025 transaction volume
- 5.7 million funded accounts globally
- Proof-of-reserves audits conducted by independent third parties
- Approximately 95% cold storage per Kraken’s security disclosures
That said, “legitimate” requires honest context. Kraken settled with the SEC for $30 million in February 2023 over the unregistered Kraken Staking Program, with a permanent injunction in place that the company has structured its new (late-2024) staking product to comply with. A separate November 2023 SEC lawsuit was ultimately dismissed with prejudice in March 2025 with no admission of wrongdoing or penalties, but represents recent regulatory friction. The June 2024 zero-day exploit ($3M from treasury, no user funds affected, funds recovered) is the only security incident in the platform’s history. Prospective users should weigh these specific historical events alongside Kraken’s strong overall regulatory profile.
Kraken Cost: What You Should Expect to Pay (US)
Kraken’s fee structure differs materially depending on which interface a user trades on.
| Transaction Type | Fee |
|---|---|
| Instant Buy (most cryptocurrencies) | 1.5% plus spread |
| Instant Buy (stablecoins) | 0.9% plus spread |
| Kraken Pro Maker (under $50K 30-day volume) | 0.16% |
| Kraken Pro Taker (under $50K 30-day volume) | 0.26% |
| ACH Deposit | $0 (1 to 3 business days) |
| Wire Transfer Deposit | Varies (typically free for incoming, network-dependent for outgoing) |
| Crypto Withdrawal Fees | Vary by cryptocurrency and network conditions |
Kraken Pro fees scale down further at higher 30-day volume tiers, reaching 0.00%/0.10% at institutional levels. For users planning to trade more than occasional small amounts, switching from Instant Buy (1.5%) to Kraken Pro (0.16%/0.26%) saves materially. Both interfaces are available at no additional cost from the same Kraken account.
Final Verdict: Kraken Review
Kraken earns an Expert Score of 4.4/5.0 from BestGuide, positioning it among the strongest US-licensed crypto exchange options for security-conscious investors and active traders. The 14+ year operating history without a hack affecting user funds, the approximately 95% cold storage allocation with proof-of-reserves audits, the Kraken Pro fee structure starting at 0.16%/0.26%, and the $2.2 billion 2025 revenue + 5.7M funded accounts scale are genuine strengths. FinCEN MSB registration and state-level licensing provide regulatory baseline. The confidentially filed November 2025 IPO suggests Payward is positioning for the additional financial transparency that public-company status brings.
The 4.4 score (rather than higher) reflects several material considerations that prospective customers should weigh. The February 2023 SEC $30 million settlement over the unregistered Kraken Staking Program resulted in permanent injunction against the prior staking structure, and while Kraken’s redesigned late-2024 staking service addresses the SEC’s concerns, the regulatory record is part of the platform’s history. The November 2023 SEC lawsuit was ultimately dismissed with prejudice in March 2025 (no admission, no penalties) but represents recent enforcement friction. The CFPB complaint database includes 492 complaints with 44% involving fraud or scam allegations (many tied to external scammers using Kraken as a transfer rail rather than Kraken’s own conduct, but the volume is material). The June 2024 zero-day exploit that drained $3 million from Kraken’s treasury was contained and recovered (no user funds affected) but is the only security incident in the platform’s history.
For active traders and security-conscious investors who can use Kraken Pro instead of Instant Buy and who understand the regulatory and operational history outlined above, Kraken delivers a compelling combination of low fees, broad asset selection, and strong cold storage practices. For users who want only the simplest possible interface at the absolute lowest fees, the Instant Buy 1.5% fee may make alternatives more attractive.
Frequently Asked Questions About Kraken
What do experts say about Kraken?
BestGuide gives Kraken an Expert Score of 4.4/5.0. Strengths: 14+ year operating history, approximately 95% cold storage, Kraken Pro fees starting at 0.16%/0.26%, 200+ cryptocurrencies, $2.2B 2025 revenue, 5.7M funded accounts, FinCEN MSB registration. Critical considerations: February 2023 $30M SEC staking settlement, 492 CFPB complaints (217 fraud/scam-related), June 2024 zero-day exploit ($3M treasury drain, recovered, no user funds affected), 2023 SEC unregistered exchange lawsuit (dismissed with prejudice March 2025).
Is Kraken worth it in 2026?
For security-conscious investors and active traders who use Kraken Pro instead of Instant Buy, yes. Kraken Pro maker/taker fees starting at 0.16%/0.26% are among the most competitive on US-licensed exchanges, materially below Coinbase Advanced (0.40%/0.60% entry level). For users who only want a simple interface, the 1.5% Instant Buy fee is high.
How does Kraken compare to other crypto exchanges?
Kraken Pro’s 0.16%/0.26% starting fees are significantly lower than Coinbase Advanced’s 0.40%/0.60% for comparable volume. Kraken supports 200+ cryptocurrencies (more than most US-licensed competitors). Kraken’s 14+ year operating history without a user-funds hack is among the longest in the industry. Kraken’s regulatory history (2023 SEC staking settlement, dismissed 2023 unregistered exchange lawsuit) and CFPB complaint volume are relevant context.
Is Kraken safe?
Kraken has operated for 14+ years without a hack affecting user funds, holds approximately 95% of digital assets in offline cold storage, and conducts independent proof-of-reserves audits. The June 2024 zero-day exploit drained $3M from Kraken’s treasury (not user accounts) and was recovered. As with any exchange, users should weigh these positives against the platform’s regulatory history and CFPB complaint volume.
How many crypto coins are on Kraken?
Kraken supports over 200 cryptocurrencies for US users across both the Instant Buy interface and Kraken Pro. The lineup includes major assets like Bitcoin (BTC) and Ethereum (ETH) plus a broad selection of altcoins.
Is Kraken publicly traded?
Not yet. Payward, Inc. (Kraken’s parent company) filed a confidential IPO registration with the SEC in November 2025. As of May 2026, the IPO is pending. When the IPO is completed, Payward will be subject to SEC public-company reporting requirements (10-Q, 10-K, 8-K filings), adding financial transparency.
Is Kraken better than Coinbase?
For active traders, Kraken Pro is often more cost-effective (0.16%/0.26% starting fees vs Coinbase Advanced 0.40%/0.60%). For beginners who value the simplest UI, Coinbase’s user experience is often considered more intuitive despite higher fees. Both are US-licensed, FinCEN-registered, and have substantial operating histories. The choice depends on whether the user values lower trading fees or simplest interface.
Who is the CEO of Kraken?
Co-CEO Arjun Sethi leads Kraken’s parent Payward, Inc. as of 2026. Founder Jesse Powell stepped down from the CEO role in 2022 and now serves as Chairman of the Board. Arjun Sethi announced the company’s 2025 financial results in February 2026.
What happened with the Kraken SEC lawsuit?
Two distinct SEC actions. February 2023: Kraken paid $30 million to settle charges over the unregistered Kraken Staking Program; agreed to discontinue the program and accept a permanent injunction. November 2023: SEC filed a separate lawsuit alleging Kraken operated as an unregistered securities exchange, broker, dealer, and clearing agency; this case was dismissed with prejudice in March 2025 with no admission of wrongdoing, no penalties, and no business changes, part of the broader 2025 SEC pivot on crypto enforcement.
Was Kraken hacked?
Kraken has operated for 14+ years without a hack affecting user funds. In June 2024, a bug bounty researcher and two associates exploited a zero-day vulnerability in Kraken’s funding system to drain approximately $3 million from Kraken’s treasury reserves (not user accounts). Kraken patched the bug within an hour, recovered nearly all stolen funds, and referred the matter to law enforcement. CertiK, the blockchain security firm involved, later acknowledged it had “made errors in judgment” in its handling of the incident.
Does Kraken offer staking in the US?
Yes, since late 2024. Following the February 2023 SEC settlement that required Kraken to discontinue the original Kraken Staking Program for US users, Kraken launched a redesigned staking service in late 2024 with structure changes (transparent on-chain rewards, separated fund delivery, no commingling) to comply with the SEC’s concerns. Supported assets and APYs are variable; confirm details directly on Kraken’s website.