Overview of Kraken Exchange
Kraken, one of the oldest United States cryptocurrency exchanges, was established in 2011 and was listed on Bloomberg Terminals, operating successfully with a valuation of $10.8 Billion in mid-2022.
What SEC Alleges against Kraken?
Payward Inc. and Payward Ventures Inc., collectively known as Kraken, are facing states from the SEC for operating the Bitcoin (BTC) trading platform as an unregistered broker, dealer, clearing agency, and securities exchange, making hundreds of millions of dollars through unlawful securities trading since at least September 2018. The SEC filed a lawsuit in Federal District Court in San Francisco, seeking interest, penalties, an injunction, and the disgorgement of illicit gains.
What has been Kraken’s response?
After the SEC’s states, Kraken swiftly responded on social media, stating that it disagrees with the states and intends to vigorously defend its position. The company reassured clients that the SEC news won’t be impact its business operations, continuing to provide services without interruption. Kraken likewise criticized the SEC for pushing digital currency exchanges to register without proper legislation and vowed to push for appropriate legislation in the United States market.
Response of the public
The public’s response to the situation has been mixed, with some clients claiming that their funds are blocked, while others praise Kraken’s security and customer service.
Hot Take: Kraken’s Response to SEC Allegations
Kraken’s rapid and robust response to the SEC’s states demonstrates the exchange’s commitment to defending its operations and reassuring clients. Nonetheless, the mixed response from the public outlines the uncertainties and challenges faced by Kraken in maintaining trust and confidence during this legal battle.
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