The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Kraken, one of the leading cryptocurrency exchanges, alleging unauthorized activities. In the lawsuit initiated at the federal district court in San Francisco, the SEC claims that Kraken violated the registration provisions of the Securities Exchange Act.
“Abandon the U.S. Warzone”
Jesse Powell, the co-founder of Kraken, strongly reacted to the SEC’s move. In a post on November 21st, Powell referred to the regulatory body as the “slowest in the U.S.,” and expressed disappointment in the SEC’s allegations of Securities Exchange Act violations against Kraken.
Powell also urged other cryptocurrency companies to leave the “U.S. warzone” to avoid expensive legal battles. Particularly, Powell commented on the settlement reached after the SEC’s previous lawsuit against Kraken, highlighting the statements regarding the $30 million collected during the settlement.
”USA’s top decel is back with another assault on America. The masochists haven’t been happy with the beatings they’ve been taking in NY and are shopping for a different flavor of RegDom in CA. I thought we settled all their concerns for $30m in Feb. Now they’re back for seconds?
Message is clear: $30m buys you about 10 months before the SEC comes around to extort you again. Lawyers can do a lot with $30m but the SEC knows that a real fight will likely cost $100m+, and valuable time. If you can’t afford it, get your crypto company out of the US warzone.”Jesse Powell.