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.
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.
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.