- Kraken rejects the SEC’s allegations and plans to mount a vigorous defense.
- The founder took to twitter in reaction to the SEC case against Kraken.
The U.S SEC has accused Kraken, Coinbase, and Binance of illegally doing business in the United States without registering as securities firms. Kraken traded a lengthy list of tokens that the SEC deems securities; each of these tokens has been the subject of many SEC enforcement cases.
Kraken rejects the SEC’s allegations and plans to mount a vigorous defense. U.S. SEC claims in a new lawsuit filed on Monday that cryptocurrency exchange Kraken commingled client and company money while acting as an unlicensed broker, clearing agency, and dealer.
Enforcement by Action Continues
Kraken co-founder Jesse Powell responded fiercely to the SEC lawsuit. U.S SEC Chair Gary Gensler is a “masochist” for his role in stifling American innovation in technology, and he is called a “decel” by the founder.
The founder took to twitter in reaction to the SEC case against Kraken. He had thought that the $30 million deal they reached with the SEC in February had resolved all of their issues, but the agency continued pursuing them.
By making it obvious that he would be defending this time, Jesse Powell intends to put a halt to the SEC’s absurd enforcement proceedings directed against the cryptocurrency sector.
“$30m buys you about 10 months before the SEC comes around to extort you again.”
If a crypto company doesn’t have more than $100 million to donate to the SEC, the SEC wants the company to leave the United States. The SEC, in keeping with its pattern from prior actions, has named many tokens as unregistered securities. The lawsuit claims that Kraken actively promoted these cryptocurrency to investors.
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