SEC sues Kraken over unregistered exchange operations, commingling of funds

• 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.