SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency

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SEC Charges Kraken for Operating as an Unregistered Securities Exchange, Broker, Dealer, and Clearing Agency

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SEC claims Kraken commingled its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash
SEC claims that Kraken made a business decision to reap hundreds of millions of dollars from investors
According to SEC Kraken's own auditors identified commingling of its customers’ crypto assets with their own as “a significant risk of loss” to its customers
SEC claims that Kraken’s alleged failure to register as Securities Exchange, Broker, Dealer, and Clearing Agency has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others
The Securities and Exchange Commission charged Kraken with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency

Date

11

Month
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20

Day
/

2023

Year

12

:

00

am

Related news events

SEC claims Kraken commingled its customers’ money with its own, including paying operational expenses directly from accounts that hold customer cash
SEC claims that Kraken made a business decision to reap hundreds of millions of dollars from investors
According to SEC Kraken's own auditors identified commingling of its customers’ crypto assets with their own as “a significant risk of loss” to its customers
SEC claims that Kraken’s alleged failure to register as Securities Exchange, Broker, Dealer, and Clearing Agency has deprived investors of significant protections, including inspection by the SEC, recordkeeping requirements, and safeguards against conflicts of interest, among others
The Securities and Exchange Commission charged Kraken with operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency

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