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U.S. Judge Denies Kraken's Motion to Dismiss SEC Case
Summary: U.S. District Judge William H. Orrick has denied Kraken's motion to dismiss the Securities and Exchange Commission’s (SEC) case against the crypto exchange, marking a significant development in the ongoing legal battle. The SEC alleges that Kraken operated as an unregistered securities exchange, broker-dealer, and clearing agency, and mishandled customer assets and information. In his ...
U.S. District Judge William H. Orrick has denied Kraken's motion to dismiss the Securities and Exchange Commission’s (SEC) case against the crypto exchange, marking a significant development in the ongoing legal battle.
The SEC alleges that Kraken operated as an unregistered securities exchange, broker-dealer, and clearing agency, and mishandled customer assets and information. In his ruling, Judge Orrick stated that the SEC has "plausibly alleged" that some of Kraken’s cryptocurrency transactions qualify as investment contracts, and therefore, securities subject to U.S. securities laws.
Kraken argued that the SEC was overreaching its authority, but Judge Orrick rejected this claim, referencing the Howey test, which determines whether an asset constitutes a security. The SEC’s case against Kraken includes specific tokens such as Cardano’s ADA, Solana’s SOL, and Cosmos’s ATOM.
Kraken now has 20 days to respond to the SEC’s complaint, with a trial date expected to be proposed in mid-October. The original January 2024 trial date has been vacated.
Tags: Cardano,Kraken,SEC,Solana,U.S. District Judge
Link: U.S. Judge Denies Kraken's Motion to Dismiss SEC Case [Copy]
