US-based crypto trading platform Kraken has found itself under legal scrutiny in the US. The US Securities and Exchange Commission (SEC) has sued Kraken for operating its business without being officially registered. The next few days could be tumultuous for the international crypto sector as this investigation is launched against Kraken and Binance CEO Changpeng Zhao admitted this week to violating US anti-money laundering laws .
In the case of Kraken, the SEC believes the trading platform made millions of dollars between 2018 and 2023 – all of which is classified as ill-gotten gains.
“The SEC alleges that Kraken combines the traditional services of an exchange, broker, dealer, and clearing agency without registering with the Commission as required by law,” Said An official statement from the SEC.
The SEC is concerned that Kraken’s failure to register its operations has left its users unprotected from market risks. Additionally, Kraken also shielded users from market protections such as oversight by the SEC and safeguards against conflicts of interest.
“We allege that Kraken made a business decision to fleece investors of millions of dollars rather than comply with securities laws. Gurbir S., Director of the SEC’s Enforcement Division. “That decision resulted in a business model fraught with conflicts of interest that put investors’ funds at risk,” Grewal said.
Meanwhile, Kraken CEO Dave Ripley has denied the SEC’s allegations via a post on X. Ripple also claimed that there is no clear path to registering with the SEC, calling its allegations ‘factually incorrect’.
We strongly disagree with the SEC’s claims, remain firm in our view that we do not list securities, and plan to vigorously defend our position.
As we have seen before, the SEC argues that @krakenfx Must “come and register” with the agency when there is no clear path to…
-Dave Ripley (@DavidLRipley) 21 November 2023
Team Kraken has also posted an official blog post Stating that he completely disagrees with the SEC and that US laws are on his side.
At the moment, the SEC has filed an official complaint against Kraken in a federal district court in San Francisco, USA. Now it is looking for a solution that can prevent other crypto players from doing the same. Additionally, the SEC is also seeking repayment of ill-gotten gains and penalties as well as interest.
Founded in the US in 2011, Kraken claims to serve over 10 million users from different parts of the world.
The value of Kraken’s native Basic Attention Token (BAT) fell 6.40 percent in the last day. It is currently trading at a price point of Rs 0.2034 (approximately Rs 16.95). coinmarketcap,
(tagstotranslate)Kraken crypto trading platform sued by US