SEC Files a Lawsuit Against Kraken for Operating Without Registration
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The US Securities and Exchange Commission (SEC) has just filed a lawsuit against Kraken's parent companies, Payward and Payward Ventures, for failing to register as securities businesses in the US.

According to the lawsuit:

"Without registering with the SEC in any capacity, Kraken has simultaneously acted as a broker, dealer, exchange and clearing agency with respect to these crypto asset securities. In doing so, Kraken has created risk for investors and taken in billions of dollars in fees and trading revenue from investors without adhering to or even recognizing the requirements of the US securities laws that are designed to protect investors."

The document also alleges Kraken's business practices, internal controls and recordkeeping posed additional risks.

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The SEC has noted Kraken has at times held more than $5 billion in customer cash, and also commingles some of its customers' cash with some of its own.

The SEC wants to prohibit Kraken from acting as an unregistered exchange, broker, dealer or clearing agency.

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