The U.S. Securities and Exchange Commission (SEC) has filed charges against cryptocurrency exchange Kraken for operating an unregistered securities exchange, broker, dealer, and clearing agency. The SEC alleges that Kraken has generated hundreds of millions of dollars in revenue since 2018 by facilitating the purchase and sale of securities without registering with the SEC, which is required by law. The regulator also claims that Kraken’s failure to register has deprived customers of regulatory inspections, safeguards against conflicts of interest, and compliance with recordkeeping requirements. Additionally, the SEC accuses Kraken of commingling customer and corporate funds, including using user funds to pay operational costs. Kraken’s auditor reportedly identified this practice as a significant risk for users. The SEC seeks fines and injunctions or restrictions on Kraken’s activities through its complaint. Kraken and its co-founder Jesse Powell have not yet commented on the case. This is not the first time Kraken has faced government action, as the SEC previously charged the company over its cryptocurrency staking service, resulting in a $30 million settlement. Kraken also had a case with the Internal Revenue Service (IRS) regarding customer information, in which it agreed to provide some but not all of the requested data. Kraken handles significant trading volumes, with recent data showing $808 million in transactions on November 20.
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 | Jesse Powell |
| Companies | Binance, SEC, Coinbase, Kraken, IRS |
| Currencies | None |
| Securities | None |
