The SEC has filed a lawsuit against cryptocurrency exchange Kraken, for operating an unregistered securities exchange, broker, dealer and clearing agency, the SEC announced on November 20.
The SEC alleges that Kraken has reaped hundreds of millions of dollars in illegal profits since September 2018, stripped investor protections, put assets at risk, and mixed customer assets.
In addition, Kraken was also accused of providing an order aggregation market, engaging in securities trading activities and acting as an intermediary in transaction settlement, abusing internal controls and maintaining shoddy records. .
The SEC is seeking injunctive relief, injunctions, and penalties against Kraken for violating the Securities Exchange Act of 1934. Notably, in February of this year, Kraken agreed to cease offering or selling securities through crypto asset staking services and paid a $30 million civil penalty.