Take Your Operations Out Of The U.S: Kraken’s CO-Founder Warns Crypto Firms
Kraken's Jesse Powell hits back at SEC lawsuit, warns crypto firms of high legal costs in the U.S.
Jesse Powell, Kraken's co-founder, publicly criticized the Securities and Exchange Commission (SEC) after it sued his company. Powell called the SEC a big impediment to development in a post on X (previously Twitter) on November 21. He said that the SEC was unsatisfied despite Kraken's payment of $30 million in February.
In another piece, Powell warned other cryptocurrency companies about the hefty cost of legal battles in the United States. He advised them to relocate their operations out of the nation. Powell estimated that litigating the SEC would cost more than $100 million and a significant amount of time.
The SEC had previously accused Kraken of engaging in improper conduct linked to its cryptocurrency service. Kraken agreed to pay $30 million and cease providing certain services in the United States.
On November 20, the SEC filed a fresh lawsuit against Kraken, accusing it of new crimes.
The SEC claims Kraken violated securities broker rules by mixing client and company funds. Kraken rejected these allegationsand called the lawsuit "disappointing." They stated that they would defend themselves in court. Kraken responded to the SEC's allegations in a blog post, claiming that no customer cash had gone missing.
