Though there were some initial concerns with the viability of Kraken’s application with the state after allegations that company leadership had falsified addresses on business records filed in California last December, state regulators told the Star-Tribune they had been granted access to the company’s financials and saw no cause to reject the company’s application.
Kinitsky said Wednesday that he does not believe the lawsuit will have any effect on its application with the Federal Reserve.
“We’ve been forthright with all of the relevant documents and relevant regulators, and everyone has been satisfied,” Kinitsky said.
In the meantime, Kraken is moving quickly. Kinitsky said it plans to begin phase one operations shortly, with a target date of March 1 to begin offering some limited services.
Though a physical location in Cheyenne is not yet finalized, Kinitsky — who recently completed a move to Cheyenne — said the company will likely have one established in the near future and begin hiring anywhere between 10-25 employees in the region.
Services will likely resemble the company’s current offerings in year one of operations, Kinitsky said, with plans to expand offerings on the retail and institutional side in years two and three, including cryptocurrency debit cards, wealth management services and others.