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

The United States Securities and Exchange Commission (SEC) has sued Kraken alleging it commingled customer funds and failed to register as a securities exchange, broker, dealer, and clearing agency with the regulator.

In a Nov. 20 complaint in a California District Court, the SEC claimed that since 2018 Kraken had operated as a platform that unlawfully facilitated the buying and selling of cryptocurrencies.

“Without registering with the SEC in any capacity, Kraken has simultaneously acted as…