Cryptocurrency exchange Kraken stated that its operations were not affected after the US Securities and Exchange Commission (SEC) filed a lawsuit against the firm's parent companies Payward and Payward Ventures for allegedly operating as an unregistered online trading platform.
Kraken Responds to SEC Allegations
Kraken called the lawsuit “wrong” and “disastrous” and said it had no impact on its products. The exchange also stated that they remain fully committed to our US global customers and partners.
The SEC's lawsuit against Kraken follows similar lawsuits against Coinbase and Binance, which the SEC alleges operate unregulated securities exchanges.
Kraken said the complaint does not allege customer losses or breaches of fiduciary duty due to fraud, market manipulation, hacking or security compromise.
The exchange also stated that the SEC's assertion that its products were investment contracts was “wrong as a matter of law, false as a matter of fact, and disastrous as a matter of policy.”
Kraken at times held more than $5 billion of its customers' cash and also mixed some of its customers' cash with its own cash, the SEC added.
In response, Kraken said that the SEC cannot and does not allege that any customer funds were missing or that any losses occurred.
*This is not investment advice.
