Court denies Kraken’s motion to dismiss SEC lawsuit
The SEC alleges Kraken is operating an unregistered securities exchange.
A United States federal court denied crypto exchange Kraken’s motion to dismiss a Securities and Exchange Commission (SEC) lawsuit alleging Kraken is operating an unregistered securities exchange, according to an Aug. 23 court filing.
In November, the SEC charged Kraken with “operating Kraken’s crypto trading platform as an unregistered securities exchange, broker, dealer, and clearing agency.”
“[T]he SEC has plausibly alleged that at least some of the cryptocurrency transactions that Kraken facilitates on its network constitute investment contracts, and therefore securities, and are accordingly subject to securities laws,” according to the opinion of the US District Court in Northern California.
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Author: Alex O’Donnell
