Bloomberg has reported that cryptocurrency exchange Kraken may face legal action from the U.S. Securities and Exchange Commission (SEC) for not registering as a cryptocurrency exchange.
In a related development, Kraken has been permitted to settle a lawsuit initiated by the SEC, which claims the platform operated as an unregistered securities exchange.
U.S. District Judge William H. Orrick’s decision allowed the case to move forward, representing a notable moment in the SEC’s ongoing scrutiny of the cryptocurrency sector.
Judge Orrick stated in a Friday opinion issued in San Francisco federal court that the SEC has reasonably argued that some cryptocurrency transactions on Kraken’s platform might be considered investment contracts, and therefore, securities subject to regulation.
Kraken had previously attempted to have the lawsuit, initially filed by the SEC in November, dismissed. However, the judge’s ruling means the legal challenge will continue.
This decision follows earlier reports from Bloomberg News in June, indicating that Kraken, a well-established cryptocurrency exchange, was considering a final financing round ahead of a potential initial public offering (IPO).
BingX, a cryptocurrency exchange, has alerted users to a possible security breach involving its hot wallet, leading to the activation of emergency protocols.
In the next five years, government prosecutors and tax agencies are expected to utilize artificial intelligence to analyze blockchain data for crime detection, according to Chainalysis CEO Michael Gronager.
Germany has shut down 47 cryptocurrency exchanges, accusing them of enabling cybercriminals to launder money by ignoring anti-money laundering regulations.
In the wake of the $230 million hack at Indian crypto exchange WazirX, the attackers have moved another $12 million worth of Ethereum.