Just-In: Kraken Faces Legal Hurdle As Judge Denies Appeal To Dismiss US SEC Lawsuit

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As a seasoned crypto investor with a decade-long journey under my belt, I must admit that the recent turn of events for Kraken has left me a tad concerned. Having navigated through numerous market fluctuations and regulatory uncertainties, I’ve learned to read between the lines when it comes to legal battles involving exchanges. The denial of Kraken’s appeal by Judge William H. Orrick is undoubtedly a significant blow.

It seems that the legal troubles for top crypto exchange Kraken are piling up, as a U.S. judge has rejected their attempt to dismiss a lawsuit filed by the SEC. According to the most recent court document, District Judge William H. Orrick has denied Kraken’s motion and ordered them to respond to the charges within 20 days of the ruling. Interestingly, this turn of events follows a legal setback that Kraken experienced against the Australian Securities and Investments Commission (ASIC).

Kraken Faces Legal Woes In US SEC Lawsuit

As a crypto investor, I’ve come to understand that Judge William H. Orrick’s recent ruling highlights the Securities and Exchange Commission’s (SEC) viewpoint that Kraken might have been involved in unregistered securities transactions. A court document revealed that the judge suggested the SEC has reasonably alleged some cryptocurrency trades on Kraken’s platform could be classified as investment contracts, thus falling under the purview of securities laws.

Significantly, the cryptocurrency exchange contends that its activities are not related to securities and hence, should be exempt from Securities and Exchange Commission (SEC) regulatory control. Nevertheless, the court’s rejection of the crypto exchange’s motion to dismiss the lawsuit indicates a potential protracted legal fight may lie ahead for the exchange.

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2024-08-23 22:32