Kraken's Co-founder, Jesse Powell, Fires Back at SEC in Light of Recent Allegations
Summary:
Jesse Powell, Kraken's co-creator, has criticized the Securities and Exchange Commission (SEC) following a lawsuit accusing his cryptocurrency platform of breaking securities laws. On social media, Powell argued that the SEC's dissatisfaction continued despite a previous $30 million settlement paid by Kraken. He warned other crypto companies to avoid expensive legal battles with SEC and possibly move out of the US. The commentary was in response to an SEC lawsuit on Nov. 20, accusing Kraken of several securities law breaches, including not registering as a securities broker and mixing customer and corporate funds.
Jesse Powell, co-creator of Kraken, has fired back at the Securities and Exchange Commission following the lawsuit they launched against his cryptocurrency platform, accusing it of breaching securities laws. On Nov. 21, Powell took to X (previously known as Twitter) to berate the regulator, dubbing it America's ultimate 'decel' – a term in the tech world for someone who hinders progress. He added that the SEC's dissatisfaction continued even after Kraken paid a $30 million settlement fee back in February.
In another comment, Powell delivered a stark warning to Kraken and other crypto companies, suggesting they vacate “the US warzone” so as to avoid costly legal confrontations. The $30 million, he clarified, only insured a 10-month hiatus before the SEC hounded the company again for more money. He implied that while a good amount could be done with $30 million, real battles with the SEC could cost over $100 million and precious time. Crypto companies unable to bear the brunt of such demands, he advised, should consider moving out of the US.
Previously, the SEC had indicted Kraken for “not registering the promotion and transaction of their digital asset staking-as-a-service program.” To settle this, Kraken paid the aforementioned $30 million and halted its services related to crypto-staking to American clients.
Powell's biting remarks come in response to a lawsuit from the SEC on Nov. 20 that leveled several accusations of securities law breaches against Kraken. The SEC alleged that Kraken failed to register itself as a securities broker and was found guilty of mixing customer and corporate funds. Kraken denied these accusations, stating that it had not listed any unregistered securities and considered the lawsuit disappointing.
Kraken has vowed to defend its stance in court. Additionally, a Nov. 20 post by Kraken clarified the SEC’s allegations concerning the mixing of funds were merely Kraken using the fees it had collected so far and there was no suggestion of any user funds being misappropriated.
Published At
11/21/2023 5:57:36 AM
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