Kraken Fires CFO Months Before IPO: Red Flag or Routine?

You raise $800 million at a $20 billion valuation, file for an IPO, then fire your CFO three months later. That's exactly what happened at crypto exchange Kraken, and the timing couldn't be more awkward.

Stephanie Lemmerman joined Kraken from Dapper Labs in November 2024. Her tenure as CFO lasted just one year and four months before being "moved" to a strategic advisory role—corporate speak for being sidelined.

The Timing Raises Questions

Kraken filed its confidential IPO paperwork with the SEC in November, just days after closing that massive funding round. Citadel Securities contributed $200 million of the total, adding Wall Street credibility to the crypto exchange's public market ambitions.

But replacing a CFO during IPO preparations? That's unusual. Robert Moore, previously VP of business expansion, has effectively taken over the role. Lemmerman's name has already vanished from the company's leadership page.

For investors eyeing Kraken's public debut, this personnel shuffle introduces uncertainty at a critical juncture.

Broader Organizational Shifts

The CFO change isn't happening in isolation. Curtis Ting became COO in December, and Kamo Asatryan was promoted to CDO in January. According to insiders, Kraken is transforming its finance function from a back-office operation into something more product-focused.

This could signal preparation for public company life, where finance teams need to be more strategic and investor-facing. Or it might indicate deeper operational challenges that required fresh leadership.

Crypto Exchanges' IPO Struggles

Kraken's situation reflects broader challenges facing crypto exchanges going public. Coinbase, the sector's poster child, has struggled since its 2021 debut. JPMorgan recently cut its price target ahead of Coinbase's Thursday earnings, citing ongoing headwinds.

Regulatory uncertainty remains a constant threat. Compliance costs are rising, and the political landscape around crypto continues shifting. In this environment, having the right financial leadership becomes even more critical.

The crypto exchange space is littered with companies that looked unstoppable—until they weren't.