The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against cryptocurrency exchange Kraken, accusing the company of violating securities laws and commingling customer funds with corporate assets. The SEC claims that Kraken has been operating as an unregistered securities exchange, broker, dealer, and clearing agency since 2018. The lawsuit alleges that Kraken unlawfully facilitated the buying and selling of crypto asset securities, resulting in significant profits. This follows similar charges brought against Coinbase and Binance in June. Kraken’s poor internal accounting practices also put customer funds at risk, with the company using accounts that held customer assets to pay operational expenses. The SEC argues that Kraken’s actions demonstrate a lack of investor protection and sends a message to others in the industry to comply with regulations.

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Information	Details
Geography	North America
Countries	🇺🇸
Sentiment	negative
Relevance Score	1
People	Gurbir S. Grewal, Sandy Seth
Companies	Kraken, Coinbase, Binance, SEC
Currencies	Cosmos Hub, Decentraland, COTI, Algorand, OMG Network
Securities	None