News - SEC sues crypto exchange Kraken
It's the second time this year: the SEC is suing Kraken for unregistered securities trading. The crypto exchange criticizes the authority's actions.
The U.S. Securities and Exchange Commission (SEC) has filed new charges against Kraken, just nine months after settling earlier charges. In a press release The SEC claims that Kraken's parent companies "operated the crypto trading platform as an unregistered securities exchange, broker, dealer and clearinghouse." In addition, Kraken allegedly mixed client assets with company funds.
According to the lawsuit the following cryptocurrencies are also securities: Cardano (ADA), Algorand (ALGO), Cosmos (ATOM), Filecoin (FIL), Flow (FLOW), Internet Computer (ICP), Decentraland (MANA), Polygon (MATIC), Near (NEAR), OMG Network (OMG) and Solana (SOL).
In June, U.S. authorities made similar allegations against Binance and Coinbase. "We allege that Kraken made a business decision to rake in hundreds of millions of dollars from investors instead of complying with securities laws," the company said. the SEC said. The San Francisco-based crypto exchange said in a statement That it offered no effects. "The SEC has repeatedly required crypto exchanges to register without a single law supporting its position and without a clear path to registration," the SEC said. criticized Kraken.
In February, the SEC accused the crypto exchange of unregistered securities trading. As a result, Kraken stopped its strike program for U.S. customers.