Kraken, one of the largest cryptocurrency exchanges, is facing legal action from the U.S. Securities and Exchange Commission (SEC) for allegedly operating as a securities exchange without proper registration. The SEC claims that Kraken failed to meet the registration requirements for being a securities exchange, broker, dealer, and clearing agency. The lawsuit argues that many of the crypto assets traded on Kraken should be classified as securities and therefore require registration with the SEC. The complaint also accuses Kraken of inadequate internal controls and poor recordkeeping practices, which could pose risks to customers. The SEC is seeking a court order to prevent Kraken from operating as an unlicensed exchange and is requesting the disgorgement of ill-gotten gains, along with interest and penalties. Kraken has rejected the SEC’s accusations, stating that it has not listed unregistered securities and plans to vigorously defend its position. The exchange argues that the SEC’s claims of commingling funds involve spending fees that have already been earned and do not involve any missing user funds. This legal action by the SEC is part of its increased scrutiny of the cryptocurrency sector, as it has recently filed similar lawsuits against other major exchanges like Binance and Coinbase.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | North America |
| Countries | 🇺🇸 |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Binance, SEC, Coinbase, Kraken, U.S. Securities and Exchange Commission |
| Currencies | Cardano |
| Securities | None |
