BREAKING: Crypto exchange Kraken sued in US – BLOX

No crypto exchange in the United States is safe from the Securities and Exchange Commission (SEC). Crack is The next victim From the United States financial regulator, the exchange platform operates as an unregistered stock market. Also, it would mix users’ assets with its own, which eventually killed FTX as well.

Significant risk to users

In its complaint against Kraken, the SEC talks about a “significant risk” to users of the exchange platform. Why? Because it has $33 billion in customer deposits mixed with its own capital.

For example, the SEC claims that Kraken made operational expenses from accounts containing customer funds.

“We allege that Kraken chose to collect hundreds of millions of dollars from investors without complying with securities laws,” SEC Enforcement Director Gurbir Grewal said in a statement.

“That decision resulted in a business model fraught with conflicts of interest that put investors’ funds at risk,” Grewal said.

Kraken responds immediately

It didn’t take long for Kraken’s response to surface online via Elon Musk’s Twitter. In that response, the exchange said it strongly disagrees with the SEC’s claims and plans to defend itself in court.

According to Kraken, today’s news will have no impact on the products they offer and they will continue to provide their services to their customers without disruption.

“Since the company’s inception, we have done everything we can to ensure that individuals can safely access this emerging technology, designed to create a fair and inclusive financial system,” Cragan said in their response to the SEC.

Let’s hope Kraken is here, because we can’t afford another FTX play on this day. After all, the price of Bitcoin has started to rise again in recent weeks.