Kraken said compliance is central to its operations and that it uses blockchain analytics partnerships to monitor onchain activity and block assets linked to sanctioned wallets before they reach the exchange. A representative for Kraken told CoinDesk that “compliance is foundational to how we operate. Kraken maintains a best-in-class compliance program, including partnerships with leading blockchain analytics providers that continuously monitor onchain activity. These controls are designed to identify and block any assets associated with sanctioned wallets before they enter our platform.”
LBank said it has consistently relied on industry-standard compliance tools for ongoing monitoring. However, the exchange acknowledged that the crypto industry is “inherently cross-platform, cross-chain, and cross-jurisdictional.”
“As a result,” the spokesperson added, “relevant risks are often not generated by, or capable of being independently identified and addressed by, any single platform, but instead represent an ongoing challenge faced by the industry as a whole.”
KuCoin said it could not verify or comment on the sanctioned-wallet activity without reviewing the underlying data. CoinDesk declined to provide that data before publication.
“We would also note that public onchain data reflects the movement of assets but does not necessarily provide a complete picture of compliance actions taken by a centralized platform after assets reach the platform. Measures such as account restrictions, regulatory reporting, or other risk-control actions may occur at the account or platform level and may not be visible from public blockchain data alone,” the representative said, adding that the exchange “maintains sanctions compliance policies and procedures designed to meet applicable legal and regulatory requirements.”
Lazarus Group’s Hyperliquid activity
The Lazarus Group’s use of Hyperliquid could expose the platform to scrutiny from authorities if it violates U.S. sanctions laws. The activity comes as the Trump administration considers how Hyperliquid could be integrated into the regulated U.S. financial system.
