At least one exchange is pushing back, claiming “abuse” within a fact-finding mission leveled at 13 cryptocurrency exchanges by the New York Attorney General’s office this week.

On Tuesday, the office of AG Eric Schneiderman sent a letter to 13 digital currency exchanges seeking information to better understand the industry, with the goal of increasing transparency and user protection, it said.

Read: N.Y. Attorney General launches inquiry into cryptoexchanges

Jesse Powell, CEO of Kraken, said Thursday he found the exploration insulting. As scrutiny around the industry grows, most exchanges welcomed the inquiry. But not Powell.

In a tweet, the CEO called the AG’s response “tone deaf” and said the market should decide the fate of regulation.

However, Powell and Kraken may find themselves with no other option than to comply.

The AG’s office said in an email to MarketWatch that they have “enforcement jurisdiction over foreign businesses [meaning those based outside of New York] operating in New York.”

This capacity appears to come through the Martin Act of 1921, which gives state AGs power to bring financial cases against individuals and companies outside the state of New York on behalf of its residents engaging with those companies.

Kraken is San Francisco based, operating in Canada, the European Union, Japan and the U.S.

New York requires crypto exchanges 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.

“Ultimately it’s in the state’s interest to protect its residents,” said Felix Shipkevich, principal of Shipkevich PLLC, adding that it is common for states to bring cases against companies that operate outside their own state.

Not only does Kraken appear to fighting an uphill battle, it may be alone. In an email to MarketWatch, Kasper Rasmussen, Bitfinex head of marketing, said the company is committed to regulatory and legal compliance in the digital exchange industry.

“We welcome the Attorney General’s initiative and share the goal of promoting integrity and investor protection within the digital asset space,” Rasmussen wrote.

Coinbase, the biggest U.S.-based cryptocurrency exchange, echoed a similar sentiment.

“Coinbase supports continued action to bring transparency to the cryptocurrency space and protect those that invest in it. We believe that New York Attorney General Eric Schneiderman’s action will bring the industry as a whole closer to the levels of accountability, professionalism and compliance that Coinbase is committed to delivering,” a spokesperson said in an email to MarketWatch.

Powell’s push-back on regulation seems to contradict a February tweet where he called an unrelated investment vehicle known as the XIV, which is an inverse VIX index, a scam. He said if it had been regulated, investors would not have lost significant amounts of money.

After Powell’s comments, the AG’s office said that any reasonable platform should have no trouble providing the information they requested: “Legitimate entities generally like to demonstrate to their investors that their money will be protected. This is very basic information that any credible platform should have on hand and be willing to share with their investors.”

Kraken had not immediately responded to a request for comment from MarketWatch.