Kraken Still Negotiating to Buy Deribit as US Regulators Demand Its User Data

San Francisco-based crypto exchange Kraken is making headlines again, but this time for two major reasons. While the company is constantly in talks with

Major crypto exchange Kraken is reportedly still in talks to acquire Deribit, a leading crypto options exchange.

The acquisition, if successful, would expand Kraken’s presence in the crypto derivatives market. However, multiple parties, including Coinbase, are interested in Deribit, and the company is still considering its options.

Meanwhile, Kraken is facing pressure from U.S. regulators, including the FBI and SEC, to share client data. Despite the challenges, Kraken’s business continues to grow, with the exchange reporting $1.5 billion in revenue for 2024.

San Francisco-based crypto exchange Kraken is making headlines again, but this time for two major reasons. While the company is constantly in talks with Deribit over its acquisition. At the same time, it is facing growing pressure from U.S. regulators to share client data.

Kraken Still Negotiating to Buy DeribitDeribit, a major crypto options exchange, is still in discussions with Kraken regarding a potential acquisition. Despite reports suggesting Kraken had backed out, sources told Blockworks the negotiations are still ongoing.

The Netherlands-based exchange is valued at around $4 billion to $5 billion, multiple sources said, adding that Deribit remains a key player in the options market, making it an attractive target for expansion.

If Kraken successfully acquires Deribit, it could strengthen its position in the crypto derivatives market, giving it an edge over rivals.

Multiple parties are interested in Deribit, including Coinbase, which is also looking to expand its derivatives offerings. However, Deribit’s CEO has clarified that the company is still evaluating multiple takeover bids, keeping its options open.

US Regulators Demand Kraken’s User DataWhile Kraken is in acquisition talks, it is also dealing with pressure from US regulators. The FBI and SEC are among several agencies requesting client data from Kraken in 2024.

However, a transparency report for the second half of 2024 revealed that Kraken received 6,826 data requests from global authorities, with 57% of them coming from US regulators.

The SEC, which previously sued Kraken for allegedly operating an unregistered exchange, accounted for 37% of the US requests. Other agencies, including the Commodity Futures Trading Commission and the Office of Foreign Assets Control, have also demanded information from Kraken.

Kraken’s Growth Despite ChallengesDespite regulatory challenges, Kraken’s business continues to grow. The exchange reported $1.5 billion in revenue for 2024, marking a 128% increase from the previous year.

The exchange also expanded its workforce, adding 1,000 new employees and bringing the total headcount to 3,500. Kraken’s expansion efforts, including a potential Deribit acquisition, could shape its future in the crypto industry.