Payward Loses Case Against Former Kraken Employee

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  • Payward Inc, the owners of Kraken, have lost a lawsuit against a former employee
  • Payward sued Nathan Runyon after he revealed their physical address in his own suit against them, as well as other perceived misdemeanours
  • Runyon is one of three former employees suing Kraken

A California judge has dismissed an attempt by Payward Inc, the owner of cryptocurrency exchange Kraken, to claim compensation from a former employee who revealed the exchange’s address and accessed a company computer system after his employment had been terminated. Nathan Runyon was sued by Payward in March, three months after filing his own suit against them for wrongful dismissal, but the judge dismissed the company’s case, ruling that revealing the physical address of the company resulted in no loss, either financially or through advantage to competitors

Payward Accused of Improper Practices

Runyon launched his case against Payward in December 2019, claiming that during his employ he was ordered by superiors to serve customers in sanctioned regions, maintain bank balances that were millions short in customer deposits, and change the terms of employee stock options without informing them. This was allied to other more extra-curricular demands like being asked for the use of his home for company business.

Runyon turned whistleblower on Kraken, after which his relationship with his superiors suffered, resulting, he says, in his being terminated on the first day of sick leave after complaining about his manager.

Three Lawsuits Outstanding For Kraken

It was in this filing that Runyon revealed the address of Payward and Kraken, to which the companies took exception, but last week U.S. District Judge Maxine Chesney dismissed Payward’s claims, leaving Runyon free to continue his case against them.

Runyon is one of three former employees currently suing the Kraken – Jonathan Silverman and Robert Adler, two former trading desk operators, sued Kraken last year over unpaid commission. These cases also allege that Kraken is still operating in New York in breach of the New York BitLicense.