EddieJayonCrypto
27 Aug 24
Kraken has lost its bid to dismiss the U.S. Securities and Exchange Commission’s (SEC) civil complaint accusing the digital asset exchange of selling unregistered securities. The motion to dismiss was rejected by Judge William Orrick of the U.S. District Court for the Northern District of California...
U.S. District Court rejects Kraken's bid to dismiss SEC's charges of selling unregistered securities. The SEC's complaint against Kraken focuses on unregistered securities, Judge Orrick rejects motion to dismiss.
Australian federal court upholds charges against Kraken's subsidiary by ASIC. Kraken has lost its bid to dismiss the U.S. Securities and Exchange Commission's (SEC) civil complaint accusing the digital asset exchange of selling unregistered securities. The motion to dismiss was rejected by Judge William Orrick of the U.S. District Court for the Northern District of California. The SEC accused Kraken of operating an unregistered securities exchange, broker, dealer, and clearing agency. The ruling stated that the SEC has plausibly alleged that some of the cryptocurrency transactions facilitated by Kraken constitute investment contracts and are subject to securities laws. Kraken's arguments regarding the Howey test and 'major questions' doctrine were also rejected. The case management conference is scheduled for October 15.
Additionally, an Australian federal court upheld charges against Kraken's local subsidiary filed by the Australian Securities and Investments Commission (ASIC) for offering margin trading product to retail customers. Kraken expressed disappointment with the ruling, citing unclear crypto rules in Australia and advocating for legal clarity.