Reportedly the US Securities body is investigating whether Kraken violated the Securities Act with its crypto services.
Kraken is a popular Crypto exchange. In terms of 24-hour crypto trade volume on the platform, Kraken stands at 3rd rank. This exchange was founded in 2011 and in 2020 this exchange had generated $1.1 billion record revenue.
On 9 Feb 2023, Bloomberg reported that the United States Securities and Exchange Commission (SEC) investigating the Kraken exchange, to find out possible violation of securities law by this exchange.
According to Bloomberg, the whole matter is not crystal clear but the phase of the investigation has reached near to end and soon Kraken & SEC may settle the case.
BREAKING: Kraken, one of the world’s largest cryptocurrency exchanges, is facing an SEC investigation into whether it offered unregistered securities to US clients https://t.co/Go1tIqH8vv pic.twitter.com/nsKOMlbiAO
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— Bloomberg Crypto (@crypto) February 8, 2023
Earlier this, in Sep 2022, Kraken’s new CEO Dave Ripley said that the exchange will not register with the SEC agency despite SEC chairman Gary Gensler calling crypto exchanges to register with the agency.
Around two months ago, Kraken exchange settled its case with the US OFCA agency over the violation of financial sanctions imposed on Iran. In that settlement, Kraken paid $362,000 to the OFCA agency as a fine.
Kraken, one of the world’s largest crypto exchanges, is under investigation by the US Treasury Department for potentially violating sanctions by allowing accounts in Iran and other countries to buy and sell crypto. Latest w/ @yaffebellany: https://t.co/BixJm2lm9g
— Ryan Mac
(@RMac18) July 26, 2022
In the present time, the majority of the Crypto exchanges are struggling to sustain their position perfectly in the Crypto sector because of bad situations.
On one side, the winter phase impacted the business of these Crypto companies, on the other side bankruptcy of multiple crypto companies shook the regulatory bodies to take strict regulatory actions on the Crypto companies, in order to ensure the safety of the investors. From May 2022 to Feb 2023 more than dozens of crypto companies filed for bankruptcy.
Read also: Robinhood will rebuy its shares which were purchased by FTX Co-Founders
Kraken on the radar of US SEC over unregistered securities offerings
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https://bitcoinik.com/kraken-on-the-radar-of-us-sec-over-unregistered-securities-offerings/feed/
