Kraken Co-Founder Criticizes US SEC for Another Attack on Cryptocurrency Industry

Kraken Co-Founder Criticizes US SEC for Another Attack on Cryptocurrency Industry

Jesse Powell Criticizes United States SEC

Jesse Powell, the co- founder of digital currency exchange Kraken, has criticized the  United States Securities and Exchange Commission (SEC) over its latest legal action. Powell referred to the SEC as “USA’s top decel” in a tweet, stating that the regulator has initiated another assault on America.

SEC Accuses Kraken of Violating Laws

The SEC recently sued Kraken, accusing the firm of violating plenty of securities laws and commingling users’ funds with corporate assets. The regulator charged Kraken with simultaneously operating as an unregistered securities exchange, broker, dealer, and clearing agency since 2018. The SEC alleged that Kraken unlawfully facilitated the trading of cryptocurrency asset securities and made large profits while doing so.

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Furthermore, the SEC claimed that Kraken’s poor internal accounting systems put users’ funds at risk, leading to account deficiencies around their assets. Accounts holding customer assets were allegedly used by Kraken to handle operational expenses.

Disagreement and Settlement

Regardless of Kraken’s disagreement with the SEC’s states and intention to defend itself, Powell believes the agency has returned to extort the cryptocurrency exchange following a $30 Million settlement in February. Kraken paid the levy as a settlement for charges related to its staking-as-a-service product being an unregistered security. The product was later terminated.

“The masochists haven’t been happy with the beatings they’ve been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they’re back for seconds?” Powell said.

Powell Urges Cryptocurrency Corporations to Leave the US

Powell further insisted that the SEC brought new charges because it knew a “real fight” would cost valuable time and more than $100 Million. He urged cryptocurrency corporations that cannot afford such issues with the SEC to get out of the “ United States warzone.” Kraken is not the only exchange facing charges, as Binance and Coinbase are likewise dealing with legal tussles with the SEC.

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Hot Take

The SEC’s legal action against Kraken has sparked controversy within the cryptocurrency community, with debates on the agency’s intentions and its impact on the industry. Powell’s criticism has shed light on the challenges that cryptocurrency corporations face when dealing with regulatory bodies, raising concerns about future of the cryptocurrency in the US.

Author – Contributor at | Website

Owen Patter is a distinguished crypto analyst, accomplished researcher, and skilled editor, leaving a notable imprint on the cryptocurrency landscape. As a proficient crypto analyst and researcher, Owen delves into the intricate realms of digital assets, offering insights that resonate with a diverse audience. His analytical acuity is harmoniously paired with adept editorial skills, allowing him to transform complex crypto information into easily comprehensible content.

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