Kraken Sued by Former Institutional Sales Head Over Alleged Sex and Pregnancy Discrimination
On November 6, 2025, cryptocurrency exchange Kraken was hit with a federal lawsuit in the U.S. District Court for the Northern District of California by its former Head of Institutional Sales and Relationships, alleging gender discrimination, pregnancy bias, and retaliation under Title VII of the Civil Rights Act and California’s Fair Employment and Housing Act (FEHA). The plaintiff, a high-ranking female executive (name not publicly disclosed in initial filings), claims she was fired after disclosing her plans to become pregnant and pursue fertility treatments, despite her strong performance driving key client relationships and revenue growth. This marks a significant escalation in scrutiny of Kraken’s workplace culture, already under fire for past controversies involving CEO Jesse Powell’s comments on gender and diversity.
The suit seeks unspecified damages for lost wages, emotional distress, punitive awards, and injunctive relief to reform Kraken’s policies. As of November 11, 2025, Kraken has not publicly responded, but a spokesperson told Bloomberg Law the company “takes these allegations seriously and will defend vigorously in court.” The case, filed pro se initially before retaining counsel, highlights broader issues in the male-dominated crypto industry, where women hold just 26% of executive roles (per 2025 Crypto Valley Association report).
Case Background and Allegations
The executive joined Kraken in early 2023 as a senior leader in its institutional arm, overseeing sales to hedge funds, family offices, and high-net-worth clients—contributing to a reported 40% YoY growth in institutional volume amid crypto’s 2025 rebound. She alleges a pattern of bias starting in mid-2024:
- Pregnancy Disclosure Backlash: After confiding in HR and her supervisor about fertility treatments and anticipated maternity leave (due Q2 2025), she claims she was sidelined from meetings, denied promotions, and subjected to micromanagement. One incident involved a male colleague attempting to “poach” her deals by contacting clients via unauthorized channels, violating compliance protocols—allegedly with no repercussions for him.
- Retaliatory Firing: In September 2025, she was terminated during a performance review, cited for “cultural fit” issues. The suit argues this was pretextual, pointing to glowing prior evaluations (e.g., “top performer” in Q1 2025) and her role in securing $150M+ in new assets under management.
- Broader Discrimination Claims: She accuses Kraken of systemic sexism, including unequal pay (women in sales earning 15-20% less than male peers) and a “boys’ club” environment where female input was dismissed. This echoes 2022 New York Times reporting on Powell’s internal memos questioning pronouns and DEI initiatives, which led to employee backlash and his CEO transition (he remains chairman).
The complaint details specific examples, such as being excluded from a high-profile client pitch after mentioning her treatments, and HR’s alleged advice to “delay family plans” for career advancement. Her attorney, a partner at a San Francisco employment firm, stated: “This isn’t just one bad actor—it’s a culture that penalizes women for basic life choices.”
Key Timeline
| Date | Event |
|---|---|
| Early 2023 | Plaintiff joins as Head of Institutional Sales; excels in role. |
| Mid-2024 | Discloses pregnancy plans; alleges bias begins. |
| Summer 2025 | Male colleague interferes in deals; no action taken. |
| September 2025 | Fired during review; files EEOC charge. |
| November 6, 2025 | Lawsuit filed in ND Cal.; served to Kraken. |
Implications for Kraken and the Crypto Sector
- For Kraken: The exchange, valued at $4B+ post-2025 funding, faces reputational risks amid regulatory heat (e.g., ongoing SEC probes). Past suits—like a 2019 whistleblower case alleging sanctions violations—have painted it as combative, but this pregnancy claim could alienate talent in a sector desperate for diversity (only 18% of crypto firms have maternity policies, per Deloitte 2025). Settlement odds: High (70% of similar suits resolve pre-trial), potentially $2-5M based on her seniority.
- Industry-Wide Echoes: This joins a wave of #MeToo-style claims in tech/crypto, including Netflix’s 2019 pregnancy suit and Real Brokerage’s 2025 CFO case. Women leaders like Coinbase’s former CHRO (who left citing bias in 2024) have amplified calls for accountability. Crypto’s 2025 bull run (BTC at $95K) hasn’t fixed gender gaps—hiring for women rose just 5%, per LinkedIn data.
- Legal Outlook: Strong under FEHA (stricter than federal law on pregnancy). Discovery could reveal emails/texts; trial possible in 6-12 months if no mediation.
As the case unfolds, expect more details via court dockets (Case No. 3:25-cv-05678). For now, it underscores the need for robust anti-bias training in high-growth firms. Kraken’s silence may shift post-filing—watch for statements. If you’re in HR or employment law, this is a teachable moment on FMLA/PDA compliance. What’s your view on crypto’s diversity challenges?