US Regulators Accuse Kraken Of Earning Hundreds Of Million Dollars From Illegal Crypto Business

Crypto company Kraken has been sued by the US Securities and Exchange Commission. (Photo; Doc. Cryptoshita)

JAKARTA - In the latest developments in the crypto world, the US Securities and Exchange Commission (SEC) has accused the leading crypto trading platform Kraken of operating as an unregistered securities exchange, broker, dealer, and clustering agency. In response to this, Kraken denied the allegations and planned to 'hold' his position in court.

According to the SEC, Kraken has made hundreds of millions of dollars illegally from the crypto trading business over the past five years and perhaps even longer. Although the SEC's view of crypto transactions as a'securities' of crypto assets has long been the subject of debate, the SEC still enforces the law based on the same ambiguity.

The SEC alleges that Kraken has run traditional exchange services, brokers, dealers, and clearing institutions without registering the function with the Commission, as required by law. By operating as an unregistered entity, Kraken is thought to have seized significant protection for investors, including inspections by the SEC, recording requirements, and protection against conflicts of interest.

Furthermore, the US SEC argues that Kraken has mixed customer money and crypto assets with its own operational funds. The complaint said that Kraken allegedly paid operational costs directly from accounts that kept customer cash. Exchange auditors have identified these observations as a "significant risk of loss" for its customers.

In a statement, Kraken said it disagreed with the allegations and intended to fight against it in court, in what could be the beginning of a prolonged crypto lawsuit against the SEC. This suggests that Kraken is ready to fight for its rights and will not back down without a fight.