By Ben GlickmanThe Securities and Exchange Commission accused cryptocurrency trading platform Kraken of operating as an unregistered securities exchange. The charges are the latest effort by regulators to crack down on crypto companies, some of which the SEC views as illegally selling securities without registering with the commission. The regulator’s complaint alleges that Kraken, the second-largest crypto exchange in the US, mixed its own cash and crypto with its customers, putting its customers at greater risk of loss. The SEC’s complaint alleges that Kraken unlawfully permitted the buying and selling of crypto asset securities and acted as an exchange, broker, dealer, and clearing agency without registering with the SEC for any of those operations. The SEC’s complaint was filed in federal district court in San Francisco and seeks injunctive relief, a conduct-based injunction, disgorgement of ill-gotten gains, plus interest and penalties.

Source: Wall Street Journal November 21, 2023 00:29 UTC