Yea I did not read 5e stat block I was not aware there is one.
Still paralyzing touch and also spellcasting is pretty unnecessary if you consider the melee attacks and grapple which is as effective but more dramatic than paralyzing touch.
To make a giant octopus a caster offers nothing I can see. I know that dragons are often excellent spellcasters, for them being involved in magic, since many of them able to change into a humanoid as well, this makes sense although their natural combat abilities make spellcasting in combat the less good option in most all the cases.
So if the Kraken lich is intelligent then this should be rather reflected in its tactics, maybe ability to communicate.