Kraken Faces Legal Hurdle As Judge Denies Appeal To Dismiss US SEC Lawsuit
The post Kraken Faces Legal Hurdle As Judge Denies Appeal To Dismiss US SEC Lawsuit appeared on BitcoinEthereumNews.com.
The legal pressure of the leading crypto exchange, Kraken, appears to be mounting as a US judge has denied its appeal to dismiss the SEC lawsuit. According to the latest court filing, US District Judge William H. Orrick has dismissed the exchange’s motion, ordering the exchange to answer the “complaint” within 20 days of the order. Notably, this development comes just after the exchange records a legal defeat against the Australian Securities and Investments Commission (ASIC). Kraken Faces Legal Woes In US SEC Lawsuit District Judge William H. Orrick’s ruling underscores the US SEC’s stance that Kraken may have facilitated unregistered securities transactions. A recent court filing showed that the judge stated that the SEC has plausibly alleged that some of the cryptocurrency transactions on the platform could be considered investment contracts. Having said that, it is subject to securities laws, the judge said. Previously, the crypto exchange has argued that its operations do not involve securities and thus should not fall under the SEC’s regulatory oversight. However, the court’s decision to deny the crypto exchange’s motion to dismiss the case suggests that the exchange could face a lengthy legal battle ahead. Meanwhile, this legal challenge is not the exchange’s first encounter with regulatory authorities. The exchange recently suffered a defeat in Australia, where the Federal Court ruled that Kraken’s operator, Bit Trade Pty, failed to comply with design and distribution obligations for its margin trading product. Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), initiated civil proceedings against Bit Trade in September 2023. ASIC alleged that Bit Trade did not determine a target market for the product before offering it to customers, despite being notified of the concerns. What’s Next For The Crypto Exchange? The court’s decision in the US marks a critical moment for the crypto…
Filed under: News - @ August 24, 2024 3:21 am