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The US Treasury Department has been investigating Kraken since 2019 and is expected to impose a fine on the cryptocurrency exchange, according to a New York Times report.

The firm may have violated U.S. sanctions, according to the Times report, by allowing users in Iran, Cuba and Syria to buy and sell digital assets. The Treasury Department Office of Foreign Assets Control is handling the investigation. Kraken would be the largest American crypto firm to be hit by enforcement action by the office. 

Kraken allegedly allowed users to operate accounts in Iran, as well as Syria and Cuba, which are under US sanctions, according to the Times. Sanctions against Iran have been in place since 1979. A Kraken spreadsheet viewed by the Times showed the firm had more than 1,500 users with residences in Iran.

Kraken CEO Jesse Powell has been vocal about who is allowed to use the exchange. He resisted calls to freeze the accounts of Russian users in February, days after the country invaded Ukraine. While the US has sanctioned some Russian businesses and individuals but has not forced crypto firms to drop the country. 

Powell and the Treasury Department did not respond to requests for comment. 

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