Kraken Charged by SEC for Unregistered Securities Operations
The SEC has charged Kraken with operating as an unregistered securities exchange, broker, dealer, and clearing agency, alleging significant investor protection violations....
- The U.S. Securities and Exchange Commission (SEC) has charged Kraken, a cryptocurrency trading platform, for operating without proper registration.
- Kraken is accused of combining the functions of an exchange, broker, dealer, and clearing agency without registering these activities.
- The SEC alleges that Kraken's unregistered operations have deprived investors of important protections.
- Concerns are raised about Kraken's business practices, internal controls, and recordkeeping, including the commingling of customer funds and assets.
- The SEC seeks injunctive relief, disgorgement of ill-gotten gains, and penalties in the ongoing litigation.
- Kraken has strongly disagreed with the allegations and vows to defend its position in court, stating that its current operations and services to clients are unaffected.
The article highlights the SEC's charges against Kraken for operating without proper registration and raises concerns about the company's business practices. The sentiment is negative, as it portrays Kraken's actions as unlawful and potentially harmful to investors.