New Crypto Exchange CFO Kraken has already paid a $65,000 fine on charges related to deceiving investors and breaching fiduciary duty. She admitted no guilt
The new CFO of $10 billion cryptocurrency exchange Kraken, Carrie Dolan, has a long history of not only helping run wildly successful fintech startups, but also being at the center of a headline that steals the collapse.
After rising through the ranks of Chevron and Charles Schwab in the 1980s, 90s and 2010s, she joined rising peer-lending startup Lending Club, run by Renaud Laplanche, and kept her books balanced as a as CFO during the San Francisco-based conference. the company’s meteoric rise to an $8.5 billion IPO in 2014. Four years later, she and two others agreed with the SEC to use funds from Lending Club clients to perform company purchases.
Despite that stain, Dolan’s experience helping companies raise capital and go public may prove just what Kraken needs to finally participate in its own public offering, which CEO Jesse Powell said last June. was on the company’s radar, possibly by the end of this year. If Dolan can ensure that the successful side of its history repeats itself, Kraken could join competitor Coinbase, with which it is tied for first place in Forbes’ inaugural ranking of the world’s best crypto exchanges, and which has been returned. public last year.
“I am thrilled to join this incredible company at a pivotal time,” Dolan said in a statement released by Kraken earlier this morning. “And work with the rest of the team to continue fulfilling Kraken’s mission to drive mainstream adoption by ensuring crypto is understood, easily accessible, and trusted.”
The statement further states that it will play a “key role” in helping Kraken become the “portal of choice” for retail and professional investors.
Dolan began her career in 1987 as an accountant in Chevron’s natural gas accounting group, according to her LinkedIn profile, and remained with the gas giant for 12 years, being promoted to chief financial officer and bank manager at Chevron Credit. . In January 2010, she concluded a 10-year career with Charles Schwab as chief financial officer of Schwab Bank and joined the Lending Club later that year, when it had 40 employees, according to her LinkedIn profile.
While at Lending Club (NYSE:LC), the company helped define the peer-to-peer lending space, before going public in December 2014. Then, nearly two years after leaving the company in September 2016, the United States Securities and Exchange Commission accused she and Laplanche by improperly adjusting fund returns to improve the returns they were bringing to investors.
Although she did not admit or deny the charges as part of her settlement, she agreed to pay $65,000 of a larger $4.2 million penalty against Lending Club itself and LaPlanche, who was barred from the securities industry as part of the penalty. Although Lending Club still exists today, it is a shadow of its former self, valued at $1.7 billion.
“Investors depend on fund advisers to give them the direct scoop on performance so they can make informed investment decisions,” Jina Choi, director of the SEC’s San Francisco regional office, said in a statement. declaration at the time of settlement. “Advisors who adjust their assessment processes to improve results are failing in their duty to investors.”
Since then, Dolan has pursued a seemingly successful career as CFO of San Francisco-based supply chain finance startup Tradeshift, at a time when it raised $200 million at a valuation of 2. $7 billion. The capital increase would also have been part of a planned IPO.
Dolan replaces former Kraken CFO Kaiser Ng, who held the position for five years, until January 2022 when he left to join an unnamed “remote-first crypto-native organization.” , according to his LinkedIn. In November 2019, a former Kraken employee sued Kraken’s parent company Payward and Ng in San Franscico Superior Court, alleging that the CFO offered to pay him rent in exchange for the use of his address in certain legal documents. A countersuit filed by Kraken was dismissed in 2020, and after a confidential settlement was hit in September 2021, the action was dismissed with prejudice.
“Carrie has a strong background in risk management,” a Kraken spokesperson said. “We are confident in his abilities to grow our business and lay the foundation for the next stage of growth for our business.”
Editor’s note: This headline has been updated to clarify the original SEC charges against Carrie Dolan.