Kraken to Distribute Over $10 Million in Aid to Clients Impacted by Ukraine Crisis

To support victims of the ongoing Russian invasion of Ukraine, Kraken is preparing an ambitious aid package distributing over $10 million directly to affected clients.

Starting tomorrow and running until July 1, Kraken clients who created an account from Ukraine prior to March 9, 2022 will be eligible to receive $1,000 in bitcoin that can be immediately withdrawn from our exchange. Currency conversion fees up to $1,000 will also be waived at this time.

“We hope to continue being able to provide critical financial services in a time of need to both our clients in Ukraine and in Russia,” said Jesse Powell, CEO of Kraken. “Cryptocurrency remains an important humanitarian tool, especially at a time when many around the world can no longer rely on traditional banks and custodians.”

As part of the effort, Kraken will also donate an amount equivalent to the total trading fees paid by Russia-based clients in the first half of 2022 to the aid package. Further, additional aid may be announced as the crisis continues to unfold.

The announcement marks the first-ever international aid distribution by Kraken. It also represents our continuing effort to align our business with the values of the cryptocurrency community and its firm belief that all global citizens should have access to financial services. This includes our clients in Russia, who may be actively trying to protest the ongoing conflict.

Kraken remains active in responding to requests by governing authorities in affected regions, and our 600-person compliance team is continuously monitoring the situation to ensure we are abiding by relevant sanctions requirements.

We believe this aid program benefits both our company and our clients, ensuring none are disenfranchised by the actions of their representatives and leaders.

More details on the distribution and its eligibility requirements can be found below:

Tranche 1
Drop date: March 10, 2022

Tranche 1 Qualification Requirements:

  • Account created in Ukraine before March 9, 2022 00:00 UTC
  • Account at ‘Intermediate’ or ‘Pro’ level verification before March 9, 2022
  • Account held a balance at any time [before March 9]
  • Account must log in by May 1, 2022 to claim the drop

Tranche 1 Distribution (both, to each qualified account):

  • $1000 USD worth of BTC, which can be immediately withdrawn
  • $1000 USD worth of Kraken Fee Credits (KFEE), which will offset future currency conversion fees

The BTC amount distributed in Tranche 1 is roughly equivalent to the total fees paid to Kraken by Ukraine residents since 2013.

Tranche 2
Drop date: April 1, 2022

Tranche 2 Qualification Requirements:

  • Account created in Ukraine before March 9, 2022 00:00 UTC
  • Account at ‘Intermediate’ or ‘Pro’ level verification before April 1, 2022
  • Account must log in by May 1, 2022 to claim the drop
  • Did not receive Tranche 1

The delay in distribution allows time for Ukraine residents to complete the ‘Intermediate’ verification level process. There is no requirement to have held a balance to receive Tranche 2.

Tranche 2 Distribution (both, to each qualified account):

  • $<TBD> USD worth of BTC, which can be immediately withdrawn
  • $500 USD worth of Kraken Fee Credits (KFEE), which will offset future currency conversion fees

<TBD> = The USD-equivalent amount of bitcoin to be distributed in Tranche 2 will be equal to the 2022 Q1 fees collected from Russia-based accounts, divided by the number of qualifying Ukraine accounts. For example, if Kraken clients in Russia pay $5 million in fees in Q1 and there are 10,000 qualifying accounts in Tranche 2, each account will receive $500 USD worth of BTC.

Tranche 3
Drop date: Several throughout Q2 2022, TBD

Tranche 3 Qualification Requirements:

  • Account created in Ukraine before March 9, 2022 00:00 UTC
  • Account at ‘Intermediate’ or ‘Pro’ level verification
  • Account must log in by August 1, 2022 to claim the drop

Tranche 3 Distribution (to each qualified account):

  • $<TBD> USD worth of BTC, which can be immediately withdrawn

<TBD> = The same formula as Tranche 2, except using 2022 Q2 fees collected from Russia-based accounts.

Source: https://blog.kraken.com/post/13215/kraken-to-distribute-over-10-million-in-aid-to-clients-impacted-by-ukraine-crisis/

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