SEC Sues Crypto Exchange Kraken for Alleged Securities Violations

Kraken Accused of Commingling Customer and Corporate Funds, Plans to Vigorously Defend Its Position

SEC has sued Kraken, one of the world's largest cryptocurrency exchanges, for allegedly operating illegally without registering as a securities exchange.
The SEC alleges that Kraken has made hundreds of millions of dollars since 2018 while depriving investors of significant protections.
Kraken is accused of having deficient internal controls and poor recordkeeping practices, including commingling its customers' money with its own.
The lawsuit seeks a civil fine, disgorgement of ill-gotten gains, and a halt to acting as an exchange without registering.
Kraken has expressed disagreement with the SEC's charges and plans to vigorously defend its position.