Kraken Co-Founder Jesse Powell Criticizes SEC Over Lawsuit
Jesse Powell, co-founder of Kraken, has expressed criticism toward the Securities and Exchange Commission (SEC) after the agency filed a lawsuit against the crypto exchange for alleged violations of securities laws.
On November 21, Powell took to social media to call the SEC “USA’s top decel,” a term used in the tech industry to insult someone who hinders progress. He claimed that the SEC wasn’t satisfied with the $30 million settlement Kraken had agreed to pay in February.
In a follow-up post, Powell warned other crypto companies to leave the US to avoid expensive legal battles, as he believed the $30 million settlement only bought Kraken about 10 months before facing another bout of extortion from the SEC. He advised others to get their crypto companies out of the US to avoid being riddled with legal issues.
SEC Lawsuit against Kraken
The SEC filed a lawsuit against Kraken on November 20, alleging several securities law violations. They accused Kraken of failing to register with the agency as a securities broker and commingling customer and corporate funds. In response, a Kraken spokesperson denied listing unregistered securities and stated that the lawsuit was disappointing, emphasizing that they would defend their position in court.
Kraken’s Response
In a blog post, Kraken refuted the SEC’s accusations of commingling, clarifying that it was merely spending fees it had already earned and that the regulator didn’t allege any user funds were missing from the company.
Hot Take
Jesse Powell and Kraken are refusing to back down after the SEC lawsuit, asserting that they will continue to defend their position in court and criticizing the SEC for what they see as unwarranted legal action against their operations.
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