{"id":24633,"date":"2023-11-21T11:06:43","date_gmt":"2023-11-21T11:06:43","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sec-accuses-kraken-of-violating-securities-laws-in-new-lawsuit\/"},"modified":"2023-11-21T11:06:43","modified_gmt":"2023-11-21T11:06:43","slug":"sec-accuses-kraken-of-violating-securities-laws-in-new-lawsuit","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sec-accuses-kraken-of-violating-securities-laws-in-new-lawsuit\/","title":{"rendered":"SEC Accuses Kraken of Violating Securities Laws in New Lawsuit"},"content":{"rendered":"

(Originally posted on : Crypto News – iGaming.org )<\/b>
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The cryptocurrency exchange Kraken is the target of a complaint brought by the U.S. Securities and Exchange Commission (SEC), which claims that the platform mixed corporate and client money and functioned as an unlicensed dealer, clearing agency, and broker.<\/p>\n

The SEC claims that Kraken broke federal securities laws by combining up to $33 billion in client cryptocurrency with its own company assets, therefore posing a \u201csignificant risk\u201d. The exchange allegedly kept more than $5 billion in client funds and combined some of them with its own, even using user funds to pay for operating costs, according to the regulator.<\/p>\n

Similar Allegations to Previous Cases<\/h2>\n

The SEC\u2019s legal effort against Kraken is a continuation of its earlier campaigns against Coinbase and Binance, two major cryptocurrency exchanges. The government argues that Kraken functions as an unlicensed exchange, clearinghouse, and broker, much like its competitors. Similar claims had been resolved by the SEC with Bittrex\u2019s American affiliate in the past.<\/p>\n

Several tokens, including Algorand (ALGO), Polygon\u2019s MATIC<\/a>, and NEAR, are included as unregistered securities in the regulatory filing. Kraken is charged with directly assisting in the public promotion of these tokens.<\/p>\n

The SEC is seeking a permanent ban on Kraken operating as an unregistered exchange, along with fines and the return of ill-gotten gains. Kraken has responded, stating, \u201cWe disagree with the SEC\u2019s complaint against Kraken, stand firm in our view that we do not list securities and plan to vigorously defend our position.\u201d<\/em><\/p>\n

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Kraken contends that congressional action is necessary to rectify the lack of regulatory certainty in the United States. The conversation shows dissatisfaction with the SEC\u2019s strategy, viewing it as \u201cregulation by enforcement,\u201d which might hurt consumers, stifle innovation, and reduce the competitiveness of the United States in the world market.<\/p>\n<\/p><\/div>\n

Source link <\/a>
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(Originally posted on : Crypto News – iGaming.org ) The cryptocurrency exchange Kraken is the target of a complaint brought by the U.S. Securities and Exchange Commission (SEC), which claims that the platform mixed corporate and client money and functioned as an unlicensed dealer, clearing agency, and broker. The SEC claims that Kraken broke federal […]<\/p>\n","protected":false},"author":5,"featured_media":24634,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[34],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24633"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=24633"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/24633\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/24634"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=24633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=24633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=24633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}