Kraken Accused by SEC of Operating Unregistered Platform, Improperly Mixing Customer Funds
The U.S. crypto exchange is the latest targeted by the Securities and Exchange Commission in a series of similar actions being fought in court by other companies....
- The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against crypto exchange Kraken.
- The SEC alleges that Kraken commingled customer and corporate funds while operating as an unregistered broker, clearing agency, and dealer.
- Kraken is accused of violating federal securities laws by creating a "significant risk" through the commingling of up to $33 billion in customer crypto with its own corporate assets.
- The SEC claims that Kraken has also held more than $5 billion worth of its customers' cash and has used customer cash to pay operational expenses.
- This lawsuit follows similar actions taken by the SEC against other crypto trading platforms, including Binance and Coinbase.
The sentiment of the article is negative, as it highlights the allegations and violations made against Kraken by the SEC.