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👉 SEC's New Victim: The War on Crypto Continues
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SEC accused Kraken of illegally facilitating the purchase/sale of crypto assets since September 2018. The fact that the crypto exchange was created precisely for such transactions does not bother the American regulator.
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SEC began «investigating» the activities of Kraken back in February, but the exchange managed to resolve some issues -
Kraken closed its staking program and paid a fine of about $30 million. But it was not possible to bury the tomahawk of war.
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On November 20, the Federal District Court in San Francisco filed an SEC lawsuit against Payward Inc. and Payward Ventures Inc., operating under the collective name
Kraken. The regulator accuses companies of illegal trading in crypto tokens, which it considers unregistered securities. SEC also accused
Kraken of operating a marketplace that combined the functions of an exchange, broker, dealer and clearing agency without proper registration. This fact, according to the regulator, does not guarantee investors full protection in a situation of bankruptcy of the exchange.
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Another more serious SEC complaint is that Kraken commingles customer funds with its own assets and uses customer accounts to pay operating expenses. This financing business model significantly increases the risk of conflicts of interest and the level of risk for investors.
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SEC is seeking an injunction against Kraken, the seizure of illegally obtained funds, and a huge amount of fines.
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Kraken does not admit the charges, is preparing for a long fight, and promises that legal conflicts will not affect its current operations and customer service. The exchange has no problems with liquidity or reserves, all capital is used legally and nothing threatens clients’ money.
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So let's stock up on popcorn and watch the new episode «SEC vs. Crypto». But we still recommend taking away your free funds from
Kraken.
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Profits to y’all!