Kraken co-founder’s scathing critique of the ‘decel’ SEC, advises others to escape the clutches of the US
Kraken Co-Founder Criticizes SEC, Urges Others to Avoid US Market
Kraken co-founder Jesse Powell is not holding back in expressing his frustration with the Securities and Exchange Commission (SEC) after the agency sued his crypto exchange for alleged securities law violations. In a tweet, Powell referred to the regulator as the “USA’s top decel” – a term used in the tech world to insult someone who hinders progress. He even claimed that the SEC wasn’t satisfied with the $30 million settlement they had already taken from Kraken.
Powell didn’t stop there. In another tweet, he warned other crypto companies to leave the “US warzone” if they want to avoid expensive legal battles. According to him, the SEC’s message is clear – they’re not going to back off easily. “$30 million buys you about 10 months before the SEC comes around to extort you again,” he stated. “If you can’t afford to fight, get out of the warzone.”
The regulator had previously accused Kraken of failing to register their crypto asset staking-as-a-service program. As part of the settlement, Kraken agreed to pay $30 million and stop offering crypto-staking products and services to U.S. customers.
Powell’s sharp comments came after the SEC filed a lawsuit against Kraken, accusing the exchange of multiple securities law violations. The agency claimed that Kraken failed to register as a securities broker and had mixed customer and corporate funds.
Kraken, on the other hand, vehemently denied listing unregistered securities and described the lawsuit as “disappointing.” The exchange is prepared to defend its position in court. In a blog post, Kraken clarified the SEC’s accusations of commingling funds, stating that they were simply using fees they had already earned and that no user funds were missing.
In conclusion, it seems like the battle between Kraken and the SEC is far from over. Whether you side with Powell or the regulator is up to you, but one thing is for sure – the crypto industry is facing some serious challenges in the United States. So, buckle up and get ready for more twists and turns in this thrilling saga!
Now, dear readers, what are your thoughts on this ongoing battle? Who will come out on top – Kraken or the SEC? Share your opinions in the comments below!