The head of a major cryptocurrency exchange will not comply with the New York attorney general's request for information.
"The resource diversion for this production is massive. This is going to completely blow up our roadmap!" Kraken co-founder and CEO Jesse Powell said Wednesday on Twitter.
"Then I realized we made the wise decision to get the hell out of New York three years ago and that we can dodge this bullet," Powell said. "Ordinarily, we're happy to help government understand our business, however, this is not the way to go about it."
Many cryptocurrency companies such as Kraken do not operate in New York because the state requires them to have a "BitLicense" from the New York State Department of Financial Services. Coinbase, Ripple, Circle and bitFlyer USA have the license, and itBit and the Winklevoss twins' Gemini Trust have charters from the financial services department.
"Legitimate entities generally like to demonstrate to their investors that their money will be protected," Amy Spitalnick, spokeswoman for New York Attorney General Eric Schneiderman, said in a statement.