YAX

SEC Sues Crypto Exchange Kraken, Alleges It Is Unregistered Broker -- WSJ

Dow Jones

-

By Vicky Ge Huang, Mengqi Sun and Dave Michaels

The Securities and Exchange Commission sued Kraken on Monday, alleging that it violated investor protection laws that require it to comply with the same rules stock exchanges face.

The SEC also alleged that Kraken commingled customers' crypto assets and fiat currencies with its own, creating what its independent auditor had identified in its audit plan as "a significant risk of loss" to its customers. The complaint alleges Kraken has at times paid operational expenses from the same bank account that holds its customers' cash.

The SEC alleges that Kraken acted simultaneously as a broker, dealer, exchange and clearing agency without registering with the agency.

The lawsuit comes after Kraken agreed to stop offering so-called crypto staking services in the U.S. and pay $30 million in penalties to the SEC in February.

The case shows that the SEC continues to file new crypto enforcement actions despite setbacks in its legal fights with Grayscale Investments] this year. The SEC has used enforcement actions to try to force crypto companies to follow the same regulations that bind Wall Street.

The biggest crypto defendants have vowed to fight the SEC in court. The lawsuit against Kraken, filed in San Francisco federal court, adds to the agency's portfolio of complex litigation.

The lawsuit against Kraken echoes similar claims the SEC made in June when it sued Coinbase . Coinbase has asked a federal court to dismiss the lawsuit. A hearing on the company's motion is scheduled for January.

The SEC now alleges that Kraken traded at least 16 crypto assets that are securities and that should have been registered with regulators before they were issued.

A spokesperson for Kraken didn't immediately respond to a request for comment. The lawsuit seeks unspecified financial penalties.

NOTE: In-line links reference additional content of interest chosen by the WSJ news team.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

November 20, 2023 18:19 ET (23:19 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

{"data":{"share":"https://www.laohu8.com/m/news/2385958685?lang=en_US&edition=full","thumbnail":"","is_english":true,"pubTime":"2023-11-21 07:19","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2385958685","market":"fut","top_or_hot":-1,"title":"SEC Sues Crypto Exchange Kraken, Alleges It Is Unregistered Broker -- WSJ","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Vicky Ge Huang, Mengqi Sun and Dave Michaels \n</p>\n<pre>\n \n</pre>\n<p>\n  The Securities and Exchange Commission sued Kraken on Monday, alleging that it violated investor protection laws that require it to comply with the same rules stock exchanges face. \n</p>\n<p>\n  The SEC also alleged that Kraken commingled customers' crypto assets and fiat currencies with its own, creating what its independent auditor had identified in its audit plan as \"a significant risk of loss\" to its customers. The complaint alleges Kraken has at times paid operational expenses from the same bank account that holds its customers' cash. \n</p>\n<p>\n  The SEC alleges that Kraken acted simultaneously as a broker, dealer, exchange and clearing agency without registering with the agency. \n</p>\n<p>\n  The lawsuit comes after Kraken agreed to stop offering so-called crypto staking services in the U.S. and pay $30 million in penalties to the SEC  in February. \n</p>\n<p>\n  The case shows that the SEC continues to file new crypto enforcement actions despite setbacks in its legal fights with Grayscale Investments] this year. The SEC has used enforcement actions to try to force crypto companies to follow the same regulations that bind Wall Street. \n</p>\n<p>\n  The biggest crypto defendants have vowed to fight the SEC in court. The lawsuit against Kraken, filed in San Francisco federal court, adds to the agency's portfolio of complex litigation. \n</p>\n<p>\n  The lawsuit against Kraken echoes similar claims the SEC made in June when it sued Coinbase . Coinbase has asked a federal court to dismiss the lawsuit. A hearing on the company's motion is scheduled for January. \n</p>\n<p>\n  The SEC now alleges that Kraken traded at least 16 crypto assets that are securities and that should have been registered with regulators before they were issued. \n</p>\n<p>\n  A spokesperson for Kraken didn't immediately respond to a request for comment. The lawsuit seeks unspecified financial penalties. \n</p>\n<pre>\n \n</pre>\n<p>\n  NOTE: In-line links reference additional content of interest chosen by the WSJ news team.\n</p>\n<pre>\n \n</pre>\n<p>\n  This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n</p>\n<pre>\n \n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  November 20, 2023 18:19 ET (23:19 GMT)\n</p>\n<p>\n  Copyright (c) 2023 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>SEC Sues Crypto Exchange Kraken, Alleges It Is Unregistered Broker -- WSJ</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nSEC Sues Crypto Exchange Kraken, Alleges It Is Unregistered Broker -- WSJ\n</h2>\n\n<h4 class=\"meta\">\n\n\n2023-11-21 07:19 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Vicky Ge Huang, Mengqi Sun and Dave Michaels \n\n\n \n\n\n  The Securities and Exchange Commission sued Kraken on Monday, alleging that it violated investor protection laws that require it to comply with...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK4023","symbol_name":"应用软件","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2385958685","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2385958685","pubTimestamp":1700522340,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"The Securities and Exchange Commission sued Kraken on Monday, alleging that it violated investor protection laws that require it to comply with the same rules stock exchanges face.The SEC also alleged that Kraken commingled customers' crypto assets and fiat currencies with its own, creating what its independent auditor had identified in its audit plan as \"a significant risk of loss\" to its customers. The complaint alleges Kraken has at times paid operational expenses from the same bank account that holds its customers' cash.The SEC alleges that Kraken acted simultaneously as a broker, dealer, exchange and clearing agency without registering with the agency.The lawsuit comes after Kraken agreed to stop offering so-called crypto staking services in the U.S. and pay $30 million in penalties to the SEC  in February.The case shows that the SEC continues to file new crypto enforcement actions despite setbacks in its legal fights with Grayscale Investments] this year. The SEC has used enforce","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4023":"应用软件","SAI":"SAI.TECH Global Corporation"},"translate_title":"美国证券交易委员会起诉加密交易所北海巨妖，声称它是未注册的经纪人——华尔街日报","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SAI":1},"content_text":"By Vicky Ge Huang, Mengqi Sun and Dave Michaels \n\n\n \n\n\n  The Securities and Exchange Commission sued Kraken on Monday, alleging that it violated investor protection laws that require it to comply with the same rules stock exchanges face. \n\n\n  The SEC also alleged that Kraken commingled customers' crypto assets and fiat currencies with its own, creating what its independent auditor had identified in its audit plan as \"a significant risk of loss\" to its customers. The complaint alleges Kraken has at times paid operational expenses from the same bank account that holds its customers' cash. \n\n\n  The SEC alleges that Kraken acted simultaneously as a broker, dealer, exchange and clearing agency without registering with the agency. \n\n\n  The lawsuit comes after Kraken agreed to stop offering so-called crypto staking services in the U.S. and pay $30 million in penalties to the SEC  in February. \n\n\n  The case shows that the SEC continues to file new crypto enforcement actions despite setbacks in its legal fights with Grayscale Investments] this year. The SEC has used enforcement actions to try to force crypto companies to follow the same regulations that bind Wall Street. \n\n\n  The biggest crypto defendants have vowed to fight the SEC in court. The lawsuit against Kraken, filed in San Francisco federal court, adds to the agency's portfolio of complex litigation. \n\n\n  The lawsuit against Kraken echoes similar claims the SEC made in June when it sued Coinbase . Coinbase has asked a federal court to dismiss the lawsuit. A hearing on the company's motion is scheduled for January. \n\n\n  The SEC now alleges that Kraken traded at least 16 crypto assets that are securities and that should have been registered with regulators before they were issued. \n\n\n  A spokesperson for Kraken didn't immediately respond to a request for comment. The lawsuit seeks unspecified financial penalties. \n\n\n \n\n\n  NOTE: In-line links reference additional content of interest chosen by the WSJ news team.\n\n\n \n\n\n  This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage). \n\n\n \n \n\n\n  (END) Dow Jones Newswires\n\n\n  November 20, 2023 18:19 ET (23:19 GMT)\n\n\n  Copyright (c) 2023 Dow Jones & Company, Inc.","kind":null,"is_publish_news":null,"is_publish_highlight":null,"is_publish_live":null,"is_publish_wemedia":null,"editions":null}}