SEC accuses Kraken of commingling customer funds, operating unregistered exchange

• The US Securities and Exchange Commission (SEC) has filed a lawsuit accusing Kraken's parent companies, Payward and Payward Ventures, of operating an unregistered exchange.
• The SEC claims that Kraken knowingly engaged in the conduct of a securities exchange and commingled customer crypto assets with its own.
• An independent auditor hired by Kraken reportedly identified that the commingling presented a significant risk of loss to its customers.
• Kraken has been accused of paying operational expenses directly from bank accounts that hold customer cash.
• The SEC emphasizes the importance of registration and regulatory oversight for investor protections in the United States capital markets.

The sentiment of the article is negative, as it highlights the allegations and claims made against Kraken by the SEC.