Crypto exchange Kraken is facing a probe from the US Securities and Exchange Commission (SEC) for violating securities laws.
The investigation will determine whether “certain offerings” made to Kraken’s US clients classify as unregistered securities.
According to Bloomberg’s report, the probe is at an advanced stage. The report claimed that the investigation “could lead to a settlement in the coming days.” However, the source did not reveal the names of the coins under scrutiny by the SEC.
The SEC has refused to provide details about the investigation. According to the US regulator,
"The SEC does not comment on the existence or nonexistence of a possible investigation."
Meanwhile, Kraken CEO Dave Ripley earlier refused to delist any tokens classified as securities by the SEC.
The SEC has increased its efforts in regulating the crypto industry over the past months.
In August 2022, the regulator launched an investigation into Coinbase. Similarly, the SEC recently opposed Binance.US’ plans of purchasing Voyager Digital for $1.022B. The SEC is also embroiled in a legal battle with Ripple (XRP), with a court ruling expected in the first half of 2023.
Written by
Ayush Pande
Ayush Pande is a hardware, gaming, and crypto writer based in India. He's a tech enthusiast who's fascinated by the potential of blockchain technology.
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