SEC sues Kraken over unregistered exchange operations, commingling of funds
The U.S. Securities and Exchange Commission (SEC) said on Nov. 20 that it has filed charges against the cryptocurrency exchange Kraken....
- The U.S. Securities and Exchange Commission (SEC) has filed charges against cryptocurrency exchange Kraken.
- Kraken is accused of operating as an unregistered securities exchange, broker, dealer, and clearing agency.
- The SEC alleges that Kraken facilitated the purchase and sales of securities without registering with the SEC, violating the law.
- Kraken's failure to register has deprived customers of regulatory protections and compliance requirements.
- The SEC also claims that Kraken commingled customer and corporate funds, posing a risk to users.
- The complaint against Kraken is similar to charges filed against Coinbase and Binance in June.
- The SEC seeks fines, injunctions, or restrictions on Kraken's activities through the complaint.
- Kraken has previously faced government action, including a charge over its cryptocurrency staking service and a case with the Internal Revenue Service (IRS).
- Kraken handles significant trading volumes, with $808 million traded on November 20.
The article presents negative sentiment towards Kraken, as it is accused of operating illegally and depriving customers of regulatory protections.