According to a Finance Magnates report on September 6, 2018, rumors have been all over social media platforms that Kraken digital assets exchange is planning to shut down its Halifax office due to low trading volumes. However, the firm has now denied all adverse claims against it.
Kraken Exchange not Shutting Down
Per Finance Magnates, the Kraken customer support team has come out to refute all rumors alleging the firm is closing its doors in Halifax, Canada.
The whole confusion reportedly started on major social media sites, with different users claiming that the San Francisco-based cryptoassets exchange is shutting down its branch at 60 Highfield park drive, which functions primarily as a customer care center for the company.
The Halifax branch reportedly has hundreds of workers in its employ, “sparking outcry and warnings about the employees’ rights.”
The Reddit post also claimed that there had been a security breach and massive ‘commotion’ at the branch and private security forces were seen all over the cryptocurrency trading company’s office, “escorting people off the premises after making them sign voluntary quit forms.”
Another user with Twitter handle @ericturnr also posted a screenshot of a Redditor, MysteriousPlankton’s post confirming the rumors.
He stated that Kraken had held an emergency meeting with its staff members, asking them to voluntarily resign before 12pm on Friday in order to get a severance package. In his words:
“10 AM, mandatory meeting. Security everywhere, [we are] required to hand in door fobs. Sitting in [the] lunchroom, [we got] told that due to volumes being down (both trading and support ticket), and in light of the opening of a new office in Asia, [Kraken] needs to reduce costs, and layoff recently hired [staff],” the message read, adding “We’re told that if we resign by Friday at noon, we’re given 8 weeks pay as a severance package. If we do not accept on time, they [will] tell us they cannot guarantee our continued employment.”
Kraken Exchange Assures Customers
Several concerned users of the platform forwarded their inquiries to the Kraken support team which promptly denied the rumors.
“Hi, thanks for your inquiry. We’re 100% secure (Kraken continues to lead in security in the exchange industry), and there’s been no security breach,” Kraken replied @RostonBBs, adding “We’re not closing operations in any specific place.”
Even with Kraken’s firm response, the rumors rages on. It remains to be seen whether the truth will emerge in the coming weeks.
However, even if Kraken, the 11th largest cryptocurrency exchange in the world eventually shuts down shop in Halifax, it won’t be the first time it’s shutting down operations in an area.
Back in April 2018, Kraken stopped servicing Japanese residents, citing rising cost of operations in the region.