Analytical Reviews

Get the latest economic news from ForexMart, including updates on the financial market, central bank policy announcements, financial indicators, and other relevant news which can impact the industry.

Disclaimer:  Information provided here to retail and professional clients does not contain and should not be construed as containing investment advice or an investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance.

SEC sued Kraken crypto exchange


November, 21 2023
watermark Economic news

The US Securities and Exchange Commission (SEC) has filed a lawsuit against the Kraken cryptocurrency exchange, accusing it of refusing to register as a securities exchange, clearing agency, broker or dealer since September 2018.


The SEC claims that most cryptocurrency tokens should be considered as securities requiring registration with the regulator.


In addition to this, the SEC accuses Kraken of using customer bank accounts to cover its operating expenses, which the independent auditor assessed as a «significant risk of loss» for customers. In 2023, the auditor revealed that the accounting of customer deposits on Kraken contained «significant errors», which was reflected in the financial statements of the exchange for 2020 and 2021.


«Kraken has made decisions aimed at extracting hundreds of millions of dollars from investors, ignoring securities legislation,» said Gurbir Grewal, director of the SEC's Enforcement Division. He stressed that such actions caused a conflict of interest in the exchange's business model and put investors' funds at risk. According to the SEC, at certain moments there were crypto assets of clients totaling more than $33 billion on the Kraken exchange.


In response to the SEC's accusations, Kraken's management disagreed with the lawsuit, emphasizing that securities are not traded on the exchange. «The SEC has repeatedly required cryptocurrency exchanges to register, despite the lack of a clear legislative requirement or a clear registration procedure. Despite the objections of lawmakers, the SEC continues to initiate lawsuits against cryptocurrency exchanges,» – Kraken said in a statement.


コメントする

ForexMart is authorized and regulated in various jurisdictions.

(Reg No.23071, IBC 2015) with a registered office at Shamrock Lodge, Murray Road, Kingstown, Saint Vincent and the Grenadines

Restricted Regions: the United States of America, North Korea, Sudan, Syria and some other regions.


© 2015-2024 Tradomart SV Ltd.
Top Top
Risk Warning:
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.
Foreign exchange is highly speculative and complex in nature, and may not be suitable for all investors. Forex trading may result in a substantial gain or loss. Therefore, it is not advisable to invest money you cannot afford to lose. Before using the services offered by ForexMart, please acknowledge the risks associated with forex trading. Seek independent financial advice if necessary. Please note that neither past performance nor forecasts are reliable indicators of future results.