Home CryptocurrencyAltcoin Kraken co-founder slams SEC ‘slowdown’, warns others should flee US

Kraken co-founder slams SEC ‘slowdown’, warns others should flee US

by SuperiorInvest

Kraken co-founder Jesse Powell lashed out at the Securities and Exchange Commission after he sued his crypto exchange for alleged securities law violations.

On November 21 mail On of dollars that he imposed on Kraken as an agreement in February.

in a follow-up mailPowell said the SEC’s message to Kraken and other cryptocurrency companies was clear and warned other cryptocurrency companies to leave “the US war zone.” to avoid costly legal battles.

“With $30 million you can buy about 10 months before the SEC extorts you again. Lawyers can do a lot with $30 million, but the SEC knows that a real fight will probably cost more than $100 million and valuable time. If you can’t afford it, get your crypto company out of the US war zone.”

The regulator had previously accused Kraken of “failing to register the offer and sale of its cryptoasset staking-as-a-service program.” As part of its settlement, Kraken agreed to pay $30 million and stop offering crypto gambling products and services to U.S. customers.

Related: Kraken will share data of 42,000 users with the IRS

Powell’s pointed comments come after a Nov. 20 lawsuit from the SEC, which accused Kraken of several violations of securities laws.

The SEC accused Kraken of failing to register with the agency as a securities dealer and claimed it had commingled customer and corporate funds.

A Kraken spokesperson denied that it included unregistered securities and described the lawsuit as “disappointing” and would defend its position in court.

In a follow-up blog post on Nov. 20, Kraken said the SEC’s commingling allegations were “no more than Kraken’s spending fees it had already earned,” and the regulator does not allege missing user funds. .

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