securityRegulatory Commission (SEC) is paying attention to the world’s third largest crypto todaycurrencyTrading platform Kraken filed a federal lawsuit accusing it of operating without regulatory approval.
In June this year, the US Securities and Exchange Commission (SEC) took legal action against Binance, the world’s largest cryptocurrency trading platform, and Coinbase, another cryptocurrency platform.
The lawsuit against Kraken was opened today in San Francisco federal court. The Securities and Exchange Commission sued Payward Trading Ltd. and Payward Ventures, the legal entities behind Kraken.
Regulators say operating without registration has been deniedinvest“Significant protections for individuals”, including SEC oversight, record-keeping requirements, and safeguards to prevent conflicts of interest.
The SEC also accused Kraken of mixing customer funds with its own funds to pay for its operating expenses.
The Securities Regulatory Commission said that audit reports of the companies concerned showed that these practices posed a “significant risk of loss” to customers.
Kraken posted a message on its website denying the SEC’s allegations and arguing that Kraken is not required to register with the regulatory agency.
“We reject these allegations and will vigorously defend our position in court,” Kraken said.
Kraken said: “Today’s news will have no impact on our products and we will continue to serve our customers.”