SEC Charges Kraken Exchange for Unregistered Operations
On November 20th, the U.S. Securities and Exchange Commission (SEC) announced charges against prominent U.S.-based cryptocurrency exchange Kraken. Since...
- The U.S. Securities and Exchange Commission (SEC) has charged cryptocurrency exchange Kraken with functioning as an unregistered broker, dealer, clearing agency, and securities exchange.
- Kraken is accused of profiting from the illegal sale and purchase of securities backed by cryptocurrency without the necessary registrations, depriving investors of SEC oversight and protections.
- The SEC's complaint also highlights significant client risks due to Kraken's business practices, including mingling client funds with its own and combining its cryptocurrency holdings with its clients.
- Kraken's platform is considered illegal by the SEC for acting as an exchange, broker, dealer, and securities depository without proper registration.
- The SEC has filed a lawsuit seeking disgorgement of profits, penalties, and injunctive relief, and Kraken had previously agreed to pay a $30 million civil penalty.
The article presents negative sentiment towards Kraken, as it is accused of illegal activities and faces charges from the SEC. The SEC's complaint highlights risks to clients and the lack of necessary registrations, indicating serious allegations against the exchange.