SEC sues Kraken alleging it’s an unregistered exchange, mixes user funds

” Without signing up with the SEC in any capability, Kraken has actually at the same time acted as a broker, dealer, exchange, and clearing agency with regard to these crypto property securities.” Additionally, the SEC declared Krakens service practices and “lacking” internal controls saw the exchange commingle customer possessions with its own which the SEC said resulted in a “considerable threat of loss” for its clients. Source: CourtListener Related: Kraken will share data of 42,000 users with IRSThe SECs grievance declares Kraken violated the registration provisions of the Securities Exchange Act of 1934.