According to breaking information, the SEC filed a lawsuit against the US cryptocurrency exchange Kraken.
According to information provided by Reuters, the SEC cited the platform's operation of an online cryptocurrency trading platform without registering with the institution as the reason for suing Kraken.
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Payward Inc., collectively known as “Kraken”. and Payward Ventures Inc. filed a lawsuit against him.
The SEC alleges that Kraken has operated an online trading platform where customers could buy and sell crypto assets since 2013, and that many of those assets were based on investment contracts under U.S. securities laws.
According to the court document, Kraken acted as a broker, dealer, exchange and clearing house for these crypto asset securities without registering with the SEC.
This resulted in him collecting billions of dollars in fees and trading revenue from investors without complying with U.S. securities laws designed to protect investors.
The SEC also alleges that Kraken's business practices, deficient internal controls, and inadequate record keeping pose additional risks. For example, Kraken at times held more than $33 billion worth of customer crypto assets and mixed them with its own assets, according to the court document. According to the SEC, this creates a significant risk of loss for its customers.
Additionally, according to the SEC, Kraken at times held more than $5 billion in customers' cash and mixed some of its customers' cash with its own cash. Kraken even sometimes paid its operational expenses directly from bank accounts that held customer cash.
The SEC's case is based on the Securities Exchange Act of 1934, which was enacted to regulate national securities markets.
The SEC argues that Kraken's activities fall within the scope of U.S. securities laws by operating a platform where crypto assets are offered and sold as investment contracts.
*This is not investment advice.
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This is the worst AI generated story I've ever read... very lazy and poorly spelled and written. If it was done by a human then it's time to go back to primary school.