The SEC filed a lawsuit in federal district court in San Francisco against Kraken, alleging that since September 2018, the crypto exchange has illegally facilitated the buying and selling of crypto assets, making hundreds of millions of dollars in the process. The SEC accused Kraken of operating as a marketplace that combined the functions of an exchange, broker, dealer and clearing agency without registering as required by law. That left investors with no recourse if they potentially lost money, officials said.
Exchange co-founder Jesse Powell called the regulator “a US brake”:
“I thought we settled everything for $30 million in February. Now they are back. The idea is clear: for $30 million you get about 10 months, and then the SEC will start extorting money from you again.”
Powell insists the SEC “knows what a real fight is,” so the proceedings could cost the company time and more than $100 million.
“If you can’t afford it, take the crypto company out of the US war zone,” Powell advised other crypto companies.
The regulator began checking Kraken’s activities for violations of laws back in the winter. However, the exchange managed to agree to end the persecution – Kraken closed its staking program and paid a fine of $30 million.
Source: Bits
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