US SEC sues Kraken crypto exchange over failure to register (updated)
20/11/2023 22:56
(Adds details from complaint, efforts to reach Kraken)
Nov 20 (Reuters) -
Kraken, one of the world's largest cryptocurrency exchanges,
was sued on Monday by the U.S. Securities and Exchange
Commission, which accused it of illegally operating its trading
platform without first registering with the regulator.
The lawsuit filed in San Francisco federal court is the
latest step in SEC Chair Gary Gensler's push to bring
cryptocurrency under his agency's purview, by contending that
crypto assets are offered and sold as investment contracts.
Kraken did not immediately respond to requests for
comment.
In its complaint against Payward Inc and Payward
Ventures Inc, which together operate as Kraken, the SEC said
Kraken has taken in billions of dollars in fees and trading
revenue without recognizing securities laws designed to protect
investors.
"Kraken has turned a blind eye to its legal responsibilities
and engaged in its securities intermediary conduct without
registering with the Commission, depriving investors of the
disclosures and protections that registration entails," the SEC
said.
Founded in 2011, Kraken serves more than 9 million
traders and institutional clients. It is backed by investors
including Blockchain Capital, Digital Currency Group,
Hummingbird Ventures, SkyBridge and Tribe Capital.
(Reporting by Jonathan Stempel in New York; Additional
reporting by Chris Prentice; Editing by Chris Reese and David
Gregorio)
((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))