Kraken Exchange Responds To SEC’s Allegations – Here’s What The Exchange Says

The post Kraken Exchange Responds To SEC’s Allegations – Here’s What The Exchange Says appeared first on Coinpedia Fintech News

One of the oldest crypto exchanges found and established in the United States was Kraken. Founded in 2011, Kraken was one of the first Bitcoin exchanges to be listed on Bloomberg Terminals. Having operated all these years successfully, it valued at $10.8 Billion in mid 2022. 

What SEC Alleges against Kraken?

Payward Inc. and Payward Ventures Inc., collectively known as Kraken, are facing allegations from the SEC for operating the bitcoin trading platform as an unregistered broker, dealer, clearing agency, and securities exchange. According to the SEC’s press report published on November 20th, Kraken has made hundreds of millions of dollars by facilitating the unlawful sale and purchase of securities backed by cryptocurrencies at least since September 2018. 

The SEC filed a lawsuit against Kraken in Federal District Court in San Francisco alleging that the company violated the Securities Exchange Act of 1934’s registration requirements. In addition, the case asks for interest, penalties, and an injunction in addition to the disgorgement of illicit gains.

What has been Kraken’s response?

A few hours later after this allegation was published by SEC on its official webpage, Kraken replied on social media platform X. In a brisk reply, Kraken heated the arguments.

It said, “Today, the SEC filed a complaint alleging that Kraken operates as an unregistered national securities exchange, broker, and clearing house. We disagree with their claims and plan to vigorously defend our position.”

Continuing to it’s original post on X, Kraken reassured its clients and affirmed the whole crypto world that the news published by the SEC will have no impact on how Kraken conducts its business. Krake will continue to provide services to their clients without any interruption. 

Kraken goes on to say that the company has been working nonstop since its founding to guarantee that everyone can use their platform to safely access the constantly developing blockchain technology.

According to their claims, the SEC has continuously pushed cryptocurrency exchanges to register even in the absence of any legislation backing them up or an obvious way to do so. 

Kraken ends their note with an optimist approach. Kraken reaffirmed that the company will keep pushing for legislation in the US market that adequately handle the particular dangers and maximize the advantages that digital assets offer to everyone. The best course of action to prevent the United States from being left behind in the global crypto rule-making process is for nonpartisan Congressional action.

Response of the public?

There has been a mixed response from both crypto supporters as well as actual clients. Many claim that the customer money has been blocked and they are unable to withdraw money from the exchange. Some people are found supporting Kraken’s good security and responsive customer service.